1. The Ministry of Statistics and Programme Implementation (MoSPI) [released](PIB_20260714_Index%20of%20Services%20Production.pdf) the (sub-sectoral, 60% of services sector) 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]
1. It informed that the Overall ISP will be brought out later after studying stability and resilience of sub-sectoral ISPs and improved overall coverage of services.
2. It 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 industries over time.
3. 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).
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.
5. 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.
6. <span style="color:#C21E56;">[Services PMI](PMI.md#Services), Index of Services Production, [Service PPI](Producer%20Price%20Index%20(PPI).md#Service%20Producer%20Price%20Index%20(Service%20PPI)%20*(services)*) - all 3 are different.</span>
## 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
> June 24, 2026 - [FAQs on ISP](MoSPI_20260624_FAQs%20on%20Index%20of%20Services%20Production.pdf)
> ==June 24, 2026 - [Press Release on FAQs on ISP](https://static.pib.gov.in/WriteReadData/specificdocs/documents/2026/jun/doc2026624901501.pdf)==
## Data Releases
1. The monthly data would be released on 29th of every month with a lag of about 60 days.
2. [July 14, 2026](https://www.mospi.gov.in/uploads/latestReleases/latest_release_1784022895781_802c2c9e-effc-4255-bdc5-e7ceee5372d1_Press_Release_14th_July__Final.pdf) - [First Release](MoSPI_20260714_First%20Release%20of%20ISP%20(sub-sectors).pdf) of sub – sectoral trial Index of Services Production (ISP) (Base Year 2024 -25)
1. In April 2026, 14 of the 19 sectors registered double-digit growth led by accommodation & food, and retail trade as show in [Chart III.7](RBI_Monthly_Bulletin_Article_202607_State%20of%20the%20Economy.pdf#page=18&selection=129,11,129,19) in article "State of the Economy" in RBI's Monthly Bulletin in July 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)
4. [PMI](PMI.md)
5. [Producer Price Index (PPI)](Producer%20Price%20Index%20(PPI).md)
[^2]: RBI. (July, 2026). ==State of the economy==. RBI Bulletin. Reserve Bank of India. [pdf](State%20of%20the%20Economy-July%202026%20Bulletin.md)