The Ministry of Statistics and Programme Implementation is set to launch the Index of Services Production on July 14, 2026, marking a significant shift in how India monitors its economy. This new monthly indicator is designed to provide a high-frequency, real-time snapshot of the services sector, which now accounts for more than 55% of the country's gross value added. By moving away from reliance on indirect proxies like bank credit or sentiment surveys, the government aims to create a more precise tool for economic forecasting and policy development.
The index functions as a services-sector counterpart to the long-standing Index of Industrial Production. While the industrial index has tracked manufacturing and mining for decades, the services sector—despite its dominance—has historically lacked a dedicated, output-based monthly measure. The new index will initially cover key formal segments, including trade, transport, finance, insurance, telecommunications, and professional services, using data from the Goods and Services Tax Network to track actual output.
This initiative is intended to help policymakers and investors better understand short-term economic trends. Because services are often intangible and consumed as they are produced, measuring them has always been a challenge. The government plans to blend administrative data with survey results to overcome these hurdles, with health and education sectors expected to be integrated into the framework as data availability improves.
For the general public and business owners, this index represents a move toward more evidence-based governance. By providing a clearer picture of how the largest part of the economy is performing, the government hopes to improve its ability to respond to economic shifts. While the initial release will be a trial series, it sets the stage for a more robust statistical system that reflects the modern, service-led nature of the Indian economy.