**Executive Summary**
The Ministry of Statistics & Programme Implementation (MoSPI) has released the Technical Advisory Committee (TAC) report outlining the framework for the Index of Services Production (ISP) with the base year 2024-25. This monthly indicator is designed to measure short-term movements in India’s formal services sector, which contributes approximately 53% of the Gross Value Added (GVA). A trial ISP series is scheduled for release on 14th July 2026, with a target dissemination timeline of 60 days from the reference month.
**Key Points / Main Content**
**Objective and Scope**
* Establishes a high-frequency monthly indicator to complement the Index of Industrial Production (IIP).
* Focuses on the formal services sector, capturing a segment that drives the majority of India's economic growth, investment, and exports.
* Aims to provide an internationally comparable framework for monitoring the services economy.
**Data Sources**
* **GST Data:** Utilizes aggregated outward supplies data from GST returns to estimate real changes in market-based services like trade, accommodation, and professional services.
* **Administrative Datasets:** Sources information from railways, aviation, banking, and insurance for sectors exempt from GST.
* **ASISSE:** Utilized specifically for gathering data on the health and education sectors.
* **Efficiency:** The approach imposes no additional reporting burden on businesses as it leverages existing tax and administrative data.
**Methodology and Framework**
* Recommends the use of a Laspeyres volume index.
* Sets the base year as 2024–25 and uses the 2-digit NIC 2025 level for compilation.
* Employs Gross Value Added (GVA) weights for aggregation.
* Adopts a "universe approach" to reflect the dynamicity and rapid expansion of the services sector.
**Implementation Plan**
* The ISP will be released initially on a trial basis to gather stakeholder feedback and validate the methodology against annual and quarterly datasets.
* Sectoral indices and the overall ISP are to be compiled monthly.
**Impact Analysis**
**MoSPI and National Statistical System**
**Impact:** Strengthens the capability to measure more than half of India's economic activity with high-frequency data.
**Action Required:** Implement monthly compilation processes and ensure the release of the trial series on 14th July 2026.
**Businesses and Service Providers**
**Impact:** Beneficiaries of improved economic monitoring without any increase in the compliance or reporting burden.
**Action Required:** No direct action required as MoSPI utilizes existing aggregated GST and administrative data.
**Economic Analysts and Policy Makers**
**Impact:** Provides a new, robust tool for understanding short-term economic movements, investment trends, and growth drivers in the services sector.
**Action Required:** Utilize the finalized TAC report to understand the ISP framework ahead of the trial series release.
Key Entities Referenced
Index of Services Production (ISP): A new high-frequency economic indicator developed to provide a monthly measure of short-term movements in India's formal services sector.
Ministry of Statistics & Programme Implementation (MoSPI): The primary ministry responsible for embarking on the compilation and release of the Index of Services Production.
Technical Advisory Committee on Index of Services Production (TAC-ISP): The committee constituted to guide the development and outline the conceptual and methodological framework for compiling the ISP.
Goods and Services Tax (GST): The primary data source used for the compilation of the ISP, specifically utilized for estimating real changes in market-based service sector output.
Ms. Debjani Ghosh: Chairperson of the TAC-ISP and Distinguished Fellow at NITI Aayog, who led the deliberations on the framework for the ISP.
Ministry of Statistics & Programme Implementation
Release of Report of the Technical Advisory
Committee on Compilation of the Index of
Services Production (ISP) with Base Year 2024-
25
प्रव तथ: 07 JUL 2026 4:00PM by PIB Delhi
MoSPI embarks on compilation of ISP as a high frequency indicator for the services
sector representing more than 50% of GVA Contribution
Report of the Technical Advisory Committee outlines conceptual & methodological
framework for compiling ISP
The services sector is the most dynamic and rapidly expanding segment of the Indian economy. It
contributes nearly 53 percent of India's Gross Value Added (GVA), generates substantial employment and
has emerged as a key driver of economic growth, investment and exports.
The proposed ISP represents an important milestone in strengthening India's statistical system and
improving the measurement of the services sector, which accounts for more than half of the country's
economic activity. ISP will complement IIP and provide, for the first time, a comprehensive monthly
measure of short-term movements in India's formal sector of the economy.
Data Sources
The availability of GST data has transformed India's statistical landscape. Every month, millions of
businesses file GST returns reporting their outward supplies, generating a rich source of information on
economic activity. For many market-based services, outward supplies reported through GST closely
reflects production because services are typically produced and consumed simultaneously. By deflating
GST-based outward supplies with suitable price deflators, it becomes possible to estimate real changes in
service sector output at a monthly frequency. Since these data are already collected for tax administration,
the approach imposes no additional reporting burden on businesses. For the purpose of compilation of ISP,
GST has shared aggregated data. MoSPI neither has access to, nor does it require unit level data for the
purpose.
Although GST provides extensive coverage of market-based services such as trade, accommodation, food
services, telecommunications, professional services, real estate and administrative support services, some
services which are exempt from GST such as Health and Education, a large chunk of railways, individual
life & health insurances, non-AC public transport and transport of essential commodities need to be
covered through other sources. For these exempted categories, ISP will draw upon two other sources of
information namely administrative datasets from railways, aviation, banking and insurance and ASISSE
for health and education. In that sense, ISP will be a unique blend of multiple data sources and
methodologies dovetailed to meet Indian situation.
Technical Advisory Committee on Index of Services ProductionTo guide the development of the ISP, MoSPI constituted a Technical Advisory Committee on Index of
Services Production (TAC-ISP) in May 2025 under the Chairpersonship of Ms. Debjani Ghosh,
Distinguished Fellow, NITI Aayog. Apart from representatives from academia and the industry
associations, the TAC – ISP has members from the Ministries / departments of the services sector.
Over the past year, the Committee held extensive deliberations on conceptual, methodological and
operational aspects of ISP compilation. As part of the consultative process, an Approach Paper on
Compilation of ISP was released in the public domain on 27th April 2026 seeking comments and
suggestions from stakeholders.
The report of the TAC-ISP has now been finalised after extensive deliberations and discussions. It
provides a comprehensive framework for compilation of monthly ISP for the formal sector of the
economy.
Report
The report presents the deliberations and recommendations of TAC on various conceptual and
methodological aspects of ISP compilation, including sectoral coverage, identification of appropriate data
sources, selection of price deflators, weighting structure, index compilation methodology and
dissemination framework. The report also documents the rationale for adopting universe approach
showcasing the dynamicity within the sector. It recommends a Laspeyres volume index with 2024–25 as
the base year, compilation at the 2-digit NIC 2025 level, and aggregation using Gross Value Added (GVA)
weights.
The Report recommends release of overall as well as sub – sectoral ISPs initially on a trial basis to gather
stakeholder feedback, validate the methodology through use of other quarterly / annual data sets and study
resilience of the indices.
To ensure timely dissemination, the Committee recommends monthly compilation of sectoral indices and
release of the ISP within 60 days of the reference month, while providing a robust, internationally
comparable framework for monitoring short-term movements in India's services economy.
The release of this report is intended to help users better understand and assimilate the proposed ISP
framework ahead of the release of the (trial) ISP series on 14th July 2026.
Report of TAC-ISP
Press Release in PDF
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