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25 June 2026

New Index of Services Production (ISP)

The Index of Services Production is a significant new macroeconomic indicator introduced by the government to measure sectoral growth, making it a highly relevant topic for questions on Indian economic planning and growth metrics.

1 min read Day 2 of 15 2 questions 2 prelims

Notes

  • MoSPI has introduced the Index of Services Production (ISP) to measure short-term growth in the services sector.
  • The ISP serves as a counterpart to the Index of Industrial Production (IIP).
  • The base year for the new ISP is 2024-25.
  • The index will be released monthly with a 60-day lag.
  • The first ISP release for April 2026 is scheduled for July 14, 2026.
  • Subsequent releases will occur on the 29th day of each month.
  • The methodology was developed by a Technical Advisory Committee (TAC) headed by Debjani Ghosh of NITI Aayog.

Part of a longer story

This is day 2 of 15 in Upgrades to India's statistical databases, which has been running since 21 June 2026. Reading it whole is usually worth more than reading today alone — the exam asks how something developed.

Questions

  1. Discuss the significance of the newly introduced Index of Services Production (ISP) in enhancing the accuracy of macroeconomic indicators for the Indian economy. 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. The services sector is a major contributor to India's GDP. In this context, examine how the introduction of the Index of Services Production (ISP) will help in better policy formulation and tracking of economic growth compared to existing industrial indices. 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. What is the base year for the newly introduced Index of Services Production (ISP)?

  2. Which ministry is responsible for the compilation and release of the Index of Services Production (ISP)?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-06-25/new-index-of-services-production-isp