The report proposes 2024-25 as the base year for the new high-frequency indicator, with information and computer-related services assigned a weight of 21.9%.
Read more: India’s digital economy to account for one-fifth of GDP by 2029: Report
Retail trade will be the second-largest component at 18.5%, followed by administrative and support services (14.4%), banking (10.7%) and road transport (7.5%). Wholesale trade has been assigned a weight of 6.4%, while accommodation and food services account for 4.2%. The ISP will cover the formal services sector and will be released every month, like the Index of Industrial Production (IIP), by the statistics ministry.
The move comes as services account for about 53% of India’s gross value added (GVA). The index will primarily draw on GST data, administrative records and the newly launched Annual Survey of Incorporated Service Sector Enterprises (ASISSE).
Administrative data will continue to be used for sectors such as railways, air transport, banking and insurance, while health and residential care services and education are proposed to be added later once ASISSE data become available. The first trial release of the ISP, covering FY26 and April 2026, is scheduled for July 14. Thereafter, trial indices will be released every month with a lag of about 60 days.
Read more: India to release first-ever monthly index tracking services sector output from July 14