FAQs on Index of Services Production \u2013 Trial Indices with Base year 2024 -25
GST
Dated:- 25-6-2026
The Ministry of Statistics and Programme Implementation (MoSPI) is preparing to launch Index of Services Production (ISP) in July, 2026, which shall be a new macro indicator to measure the short-term changes in the growth of the services sector. As counterpart of the IIP which measures the economic growth of the industrial sector, ISP will cover the formal services sector and will be released on a monthly basis.<\/p>\n
To assist MoSPI in the finalization of the conceptual & methodological framework for compiling ISP, a Technical Advisory Committee (TAC) on compilation of ISP, was constituted 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.<\/p>\n
Based on the deliberations held in <\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n of Incorporated Services Sector Enterprises (ASISSE) are released.<\/p>\n The base year of ISP is selected as 2024 -25. The trial monthly indices for the year 2025 -26 and for the month of April, 2026 are slated for release on 14^th July, 2026. Thereafter, regular release of the monthly trial indices will be made with a lag of about 60 days on the 29^th Day (or next working day in case of a holiday) of every month.<\/p>\n To assist users and other stakeholders in appreciating the methodological & conceptual framework of compilation of ISP series, MoSPI is releasing, through this press release, a booklet on Frequently Asked Questions (FAQs).<\/p>\n ***<\/p>\n FAQs on Index of Services Production<\/p>\n 1. What is the Index of Services Production (ISP)?<\/p>\n The Index of Services Production (ISP) is a short-term indicator designed to measure changes over time in the volume of output produced by the services sector relative to a specified base period. It measures changes in the real output of service-producing<\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n vices industries, thereby, strengthening monitoring of economic activity and supporting evidence-based policy decisions. In addition, ISP will serve as a high-frequency indicator of services sector growth and will provide timeseries data to enable better economic forecasting and business cycle analysis. Main users of ISP would be National Accounts, economic Ministries \/ departments, domain experts and researchers.<\/p>\n 5. What were the major challenges that India was not able to compile an ISP earlier?<\/p>\n The compilation of an ISP requires high-frequency, reliable and representative indicators of service sector output. Unlike manufacturing, where production can often be measured through physical quantities of goods produced, services are largely intangible and many service activities do not have directly observable output measures. Historically, compilation of ISP in India faced several challenges, including:<\/p>\n \u2022 Limited availability of administrative datasets covering service<\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n be released?<\/p>\n MoSPI will utilize three main data sources for ISP namely administrative data, GST and ASISSE. As some of these sources are still evolving and GST data will be used for the first time in statistical applications, trial or experimental ISP indices will be released for some time to observe their stability and resilience. Thereafter, regular compilation and dissemination will take place.<\/p>\n 8. What are the major data sources proposed for ISP?<\/p>\n The three principal data sources are:<\/p>\n \u2022 Administrative\/secondary data for ISP of Air Transport, Railway Transport, Banking and Insurance;<\/p>\n \u2022 GST data for Wholesale Trade, Retail Trade, Repair and Maintenance, Accommodation and Food, Road Transport, Water Transport, Warehousing and support activities for transportation, Postal & courier, Telecommunications, Information and Broadcasting, Real estate, Information and computer related services, Professional, scientific & technical services including R & D, Admi<\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \u2022 Activities of private households with employed persons<\/p>\n \u2022 Activities of extraterritorial organisations<\/p>\n \u2022 Health and Education services provided by Government and<\/p>\n \u2022 Gambling and betting activities<\/p>\n 11. How are Health and Education sub – sectors, exempt from GST will be covered in ISP?<\/p>\n Indices of Health and Education sub – sectors (excluding government contribution) are planned to be compiled on the basis of estimates from ASISSE surveys.<\/p>\n 12. What will be the frequency of release of All India ISP?<\/p>\n ISP will be released with a monthly frequency with a lag of about 60 days.<\/p>\n 13. What are quantity-based indicators?<\/p>\n Quantity based indicators directly measure the output in physical quantities terms such as passenger-kilometers travelled in case of Air Transport. In ISP, indices of only two sub – sectors, namely, Air Transport and Railways are based on quantity output.<\/p>\n 14. What are value-based indicators?<\/p>\n Indicator<\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n cations adapted for the Indian context by the Central Board of Indirect Taxes and Customs (CBIC). SAC is used to classify different types of services for the purposes of taxation, invoicing, and filing GST returns. SACs facilitate mapping of GST outward supplies to the National Industrial Classification (NIC) codes of the services industries.<\/p>\n 18. How are GST data transformed into output measures?<\/p>\n Aggregated data on SAC wise Taxable Value of Sales (outward supplies), as obtained from the return GSTR 1, can be considered as the output variable in value terms. GSTN has made available product \/ service wise (SAC codes) data on 'outward supplies' for different service activities as extracted from monthly GST returns. MoSPI does not have access to nor does it require individual unit level data for this purpose.<\/p>\n The production of services directly results into its sale \/ consumption. Hence, use of GST data of outward supplies essentially reflects production of services. O<\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e Service Producer Price Indices (SPPIs) are preferred as deflators for ISP, in case of non-availability of SPPI, CPI is recommended.<\/p>\n 22. Why has SPPI not been used for ISP?<\/p>\n The data on SPPI is available only for limited services. In respect of the sub – sectors being covered under ISP; SPPIs are available only for five sub- sectors, namely, Air Transport, Railways, Telecom, Banking and Insurance for which SPPI were available. In case of Air Transport and Railways, as the output indicator of ISP is in terms of quantity, no deflator is required.<\/p>\n Further, as the SPPIs are available with a quarterly frequency and lag of 60 days their use in monthly ISP may not be feasible. Thus, use of CPI (communications) as a deflator for telecom sub – sector will be made. In case of financial sub – sectors (Banking and Insurance), in accordance with the report of the sub – committee on 'Methodological improvement for the base year revision of GDP (base year 2022 -23), use of general CPI as a d<\/p>\n = = = = = = = =<\/p>\n
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