1. The Ministry of Statistics and Programme Implementation (MoSPI) released the Index of Services Production (ISP) \[base year: 2024–25\] on
[July 14, 2026](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2284646®=48&lang=2), on a trial basis. [^2]
2. It fills an important gap in India’s statistical system by providing a monthly measure of formal services sector activity, complementing the Index of Industrial Production (IIP).
3. ==The monthly data would be released every month with a lag of about 60 days.==
4. It is compiled using value data (which is converted into volume data using price index) GST data and sector-specific administrative records. ISP covers 19 service sub-sectors, accounting for around 60 per cent of the services sector. Health and education services sector will be incorporated once data from the
5. In April 2026, 14 of the 19 sectors registered double-digit growth led by accommodation & food, and retail trade (Chart III.7).
6. Before this new services index existed, MoSPI could track monthly industrial output (via IIP) but had no equivalent monthly gauge for services, which was a real gap, even though services contribute 50-55% of India's GVA.
## Difference in services PMI and ISP.
1. PMI, also known as HSBC India Services PMI®, reflects business sentiment (improvement, deterioration, or no change), while the ISP measures actual physical or real output volume and growth relative to a base year.
2. So Services PMI is survey-based qualitative "diffusion index" (direction and breadth of change) while ISP is a quantitative index.
| Factors | Services PMI | Index of Services Production |
| ------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Nature of the Index | A survey-based qualitative "diffusion index" reflecting business sentiment (improvement, deterioration, or no change). | A quantitative macroeconomic index measuring actual physical or real output volume and growth relative to a base year. |
| Data Source | Questionnaires to purchasing executives, supply chain managers, and senior business executives, regarding new orders, employment, and business expectations. | It uses administrative records, tax data (like GST filings) which has value data and is converted into volume/qty data using sector-specific price index/price deflators. |
| Interpretation | Uses a 50-point baseline where readings above 50 signal expansion and below 50 signal contraction. | It is just like the Index of Industrial Production (IIP), tracking actual volume growth % and sub-sector output indexes against a selected base period |
| Purpose | As there is no lag, it acts as a fast, early leading indicator of any shift in in business cycles. | Provides a monthly read on formal services output, complementing the IIP, released with a 60-day lag, distinct from official GVA/GDP estimates |
### e-Sankhyiki Portal
1. [Launched](https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=151992&ModuleId=3®=3&lang=1) on National Statistics Day 2024, it is [portal](https://esankhyiki.mospi.gov.in/) for official statistical data by MoSPI.
> Must Read - An approach [paper](https://www.mospi.gov.in/uploads/announcements/announcements_1777286440613_75065afb-ded9-4c80-ba5d-bdd2fc61f355_Services_sector_approach_paper_final_merged.pdf) to compilation of the Index of Service Production (ISP) for the formal sector of the economy, dated July 7, 2026
## Related Notes
1. [Inflation](Inflation.md)
2. [Inflation and RBI](Inflation%20and%20RBI.md)
3. [Flexible Inflation Targeting (FIT)](Flexible%20Inflation%20Targeting%20(FIT).md)
[^2]: RBI. (July, 2026). ==State of the economy==. _RBI Bulletin_. Reserve Bank of India. [pdf](State%20of%20the%20Economy-July%202026%20Bulletin.md)