The services sector has firmly established itself as the primary engine of India's economic growth, driving more than half of the national Gross Value Added (GVA). To monitor this vital performance accurately, MoSPI initiated a monthly compilation of the ISP for the formal sector with 2024–25 as the base year, on a trial basis in July 2026.

The initial framework tracks 19 broad service sub-sectors—relying on high-frequency administrative data sources and data of outward supplies from GST which collectively accounted for approximately 60 per cent of services-sector GVA. However, core government tasks, non-market activities and GST-exempt services are excluded from the present framework.

To bridge these gaps and build a truly comprehensive Index of Services Sector, the Ministry intends to expand the scope of ISP, further. With this aim, MoSPI has published an ‘Approach paper on Expanding the scope and coverage for the Index of Services Production’.  

The approach paper details methodologies to onboard three major service areas that were previously left out: Education, Human Health & Residential Care, and Public Administration & Defence. Together, these three vital sectors represent nearly 21 per cent of services GVA for the 2024–25 period. By successfully incorporating them, MoSPI will elevate the total coverage of the monthly ISP to approximately 78.4 per cent of the entire services-sector GVA.

This expanded framework will enable aggregation of the sub-sectoral indices into a unified, all-encompassing Index of Services Production that provides a representative reflection of short-term movements of India's services sector.

MoSPI invites views and comments from experts, academicians, central government ministries/departments, state governments, financial institutions and other stakeholders on the proposed methodology. The Approach Paper is available on the MoSPI’s website www.mospi.gov.in. Comments and suggestions may be sent to the email to ddgec.esd@mospi.gov.in by 16^th October, 2026.

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Samrat

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