Release services production index within 60 days: Panel, Pg15

Key Highlights:

• An expert panel recommended that the Index of Services Production (ISP) be released within 60 days after the reference month.
• The panel also suggested compiling sectoral indices for services on a monthly basis.
• The Ministry of Statistics and Programme Implementation (MoSPI) constituted a Technical Advisory Committee on ISP (TAC-ISP) in May 2025.
• The TAC-ISP is chaired by Debjani Ghosh, a Distinguished Fellow at NITI Aayog.
• An approach paper on the compilation of the ISP was released on April 27, 2026, as part of a consultative process.
• The ISP is designed to be India's first monthly indicator for the services sector, complementing the existing Index of Industrial Production (IIP).
• The proposed base year for the ISP is 2024-25.

Detailed Insights:

• The services sector contributes over 50% of India's Gross Value Added (GVA), making a monthly indicator crucial for economic analysis.
• The ISP aims to fill a significant data gap, as there was previously no high-frequency output index for the services sector.
• It will measure short-term movements in India's formal services sector, providing timely insights for policymakers.
• The index will be compiled using Goods and Services Tax (GST) data and administrative datasets from sectors like railways, aviation, banking, and insurance.
• The TAC-ISP recommended using a Laspeyres volume index methodology with 2024-25 as the base year and GVA weights.
• The initial release of the ISP will be on a trial basis to validate its methodology and gather stakeholder feedback.
• While covering major organized services, the ISP currently has limitations in fully capturing the informal sector and some GST-exempt services like health and education, though efforts are underway to integrate data from sources like ASISSE.
• The introduction of the ISP is expected to significantly enhance evidence-based policymaking and economic planning in India.

Key Concepts Involved:

• Index of Services Production (ISP): A proposed monthly economic indicator by MoSPI to measure changes in the real output of India's services sector.
• Ministry of Statistics and Programme Implementation (MoSPI): The nodal agency of the Government of India responsible for the country's statistical system and data dissemination.
• NITI Aayog: The premier policy think tank of the Government of India, providing strategic and technical advice on economic and policy matters.
• Index of Industrial Production (IIP): An economic indicator that measures the short-term changes in the volume of production in industrial sectors like mining, manufacturing, and electricity.