India has launched the Index of Services Production (ISP) to align its statistical system with global standards, recognizing the services sector’s pivotal role in economic growth and job creation. The government aims to establish India as a global services leader, targeting a 10% share in global services by 2047. The ISP, the country’s first high-frequency indicator for measuring services sector output, monitors short-term changes in formal services sector output compared to a specified base year.
The services sector has been a significant contributor to India’s GDP, accounting for over 50% of the Gross Value Added (GVA) since 2013-14. By 2024-25, the services GVA share had reached nearly 52.9%. This sector also plays a crucial role in employment, constituting 30% of total employment in India and creating 40 million jobs in the past six years. India’s services exports have shown robust growth, with services exports in April-June 2026-27 estimated at $103.41 billion, marking a 6.16% annual increase.
Recognizing the services sector’s importance in India’s economic landscape, the government introduced the ISP to address the lack of a dedicated short-term indicator for tracking its performance. Unlike the Index of Industrial Production (IIP), which focuses on industrial activity, the ISP provides insights into short-term trends in the services sector. The first sub-sectoral trial ISP for 19 sub-sectors in April 2026 revealed that 14 sectors experienced double-digit growth compared to April 2025.
Key sub-sectors that demonstrated significant monthly growth include accommodation and food (37.2%), retail trade (30.8%), administrative and support services (28.7%), real estate (27.7%), and telecommunications (22.8%). By integrating high-frequency data and a robust methodology, the ISP offers timely and valuable insights into India’s largest economic sector.
