Index of Services Production (ISP)
Prelims:
Indian Economy
Mains:
GS Paper III-Indian Economy, Science &
Technology
Current
relevance:
The Government of
India has introduced the Index of Services Production (ISP), India's
first high-frequency indicator to measure the performance of the formal
services sector.
Highlights:
1.
The
Index of Services Production (ISP) has been introduced as India's first high-frequency
indicator to track short-term changes in the output of the formal services
sector.
2.
The Ministry of
Statistics and Programme Implementation (MoSPI) constituted a Technical
Advisory Committee (TAC) in 2025 to develop the conceptual and
methodological framework for the ISP.
3. The first trial index covers 19 service sub-sectors, representing nearly 60% of the services sector.
About Index of
Services Production (ISP):
1. It
is impotant because services sector contributes
over 50% of India's Gross Value
Added (GVA).
2. The
base year for the ISP is 2024–25.
3. The
ISP is released monthly, with a time lag
of approximately 60 days.
4. It
is compiled using Administrative Data,
GST data, and the Annual Survey of
Incorporated Services Sector Enterprises (ASISSE).
5. The
index uses price deflators (CPI and WPI)
to convert nominal (value-based) data
into real (volume-based) output.
6. The
ISP fills the gap left by the Index of
Industrial Production (IIP) by providing a dedicated measure of services sector performance.
Source: PIB
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https://www.pib.gov.in/PressReleasePage.aspx?PRID=2284646®=48&lang=2