New Delhi, Oct 7: The Ministry of Statistics and Programme Implementation (MoSPI) has proposed expanding the Index of Services Production (ISP) to provide a more complete picture of activity across India’s services sector.
The ministry has released an approach paper outlining plans to bring three important areas currently outside the index into its coverage. These include education, human health and residential care, and public administration and defence.
The services sector contributes more than half of India’s Gross Value Added (GVA) and remains a major driver of economic growth. MoSPI said improving the coverage of services-sector data would help provide a clearer and more timely assessment of economic activity.
MoSPI began compiling the ISP on a trial basis in July 2026, with 2024-25 as the base year. The initial framework covers 19 broad service sub-sectors and uses high-frequency administrative data, along with information on outward supplies reported through the GST system.
However, the existing framework does not cover several important areas of the services economy. These include certain government activities, non-market services and services that are exempt from GST.
The proposed expansion is aimed at filling these gaps and making the index more representative of the wider services sector.
The inclusion of education, healthcare and residential care, as well as public administration and defence, could provide a broader view of activity in sectors that play an important role in the economy and in people’s daily lives.
A more comprehensive index would also help policymakers, economists and businesses better understand changes in the services sector and assess its contribution to overall economic growth.
MoSPI has invited experts, academicians and other stakeholders to provide their views and suggestions on the proposed methodology. Comments can be submitted by October 16, 2026.
The proposed changes are expected to strengthen the measurement of services-sector activity and provide a more complete picture of one of the most important parts of India’s economy.