• New monthly services index: India plans to introduce a headline Index of Services Production (ISP) within the next few months.

• First official gauge: The index will provide the first official monthly measure of output across India’s services sector.

• Why it matters: It will complement existing indicators like the Index of Industrial Production (IIP) for manufacturing.

• Trial phase completed: The government has already released trial monthly indices for 19 service sub-sectors, covering around 60% of the formal services economy.

• Composite index coming soon: A single headline services output number will be launched after finalising data coverage.

• Possible expansion: The government is evaluating the inclusion of health and education before the full rollout.

• Flexible launch: If required, the index may initially launch with the existing 19 sectors, while more sectors are added later.

• Strong sector performance: Trial data showed 14 out of 19 service sub-sectors recorded double-digit annual growth in April.

• Top-performing sectors: Accommodation & food services, retail trade, and administrative services led the growth.

• Mixed performance: Air transport contracted, while railway transport remained largely flat.

• Better economic tracking: The new index will help the government monitor economic activity in real time and improve the accuracy of quarterly national accounts.

• Investor benefit: A monthly services output indicator will offer better insights into India’s largest economic sector for policymakers, businesses, and investors.