New Delhi, June 24 (IANS). The Ministry of Statistics and Program Implementation (MoSPI) on Wednesday said it will launch the Index of Services Production (ISP) in July 2026 to measure short-term changes in the growth of the formal services sector on a monthly basis. The Ministry has also issued a detailed FAQ related to this to assist the users.
The FAQ explains that the Index of Services Production (ISP) is a short-term indicator designed to measure changes over time in services sector output compared to a specified base period.
It shows the changes over time in the real output of industries related to the service sector.
The ISP will function like the Index of Industrial Production (IIP), but will cover the formal services sector on a monthly basis. This will provide regular and instant information on the activities and performance of the service sector.
According to the ministry, the service sector has become the most important strength of the Indian economy. Since the year 2013-14, it has been contributing more than 50 percent to the gross value added of the country.
Given the growing importance and potential of the services sector and in line with global standards, India needed a short-term indicator that could regularly measure the growth of this sector.
This will help planners and policy makers to take appropriate steps in time and decide the development direction of the service sector.
The ministry said that a key objective of the ISP is to provide complementary economic indicators with the IIP to understand short-term developments in the economy.
Additionally, it also aims to strengthen the existing statistical framework by providing high-frequency information on service sector performance to better support policy making and economic analysis.
The ISP will provide timely information on the performance of service sector industries, making monitoring of economic activities more effective and facilitating fact-based policy decisions.
It will also be a high-frequency indicator of service sector growth and provide time series data to improve economic forecasting and business cycle analysis.
–IANS
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