India To Launch Index Of Services Production To Track Economic Growth

India is preparing to introduce a headline Index of Services Production (ISP) in the coming months, marking a significant shift in how the nation tracks its economic activity. This new index aims to provide a unified monthly gauge for the services sector, which currently accounts for more than 50% of India's Gross Value Added (GVA).

The current reliance on disparate indicators often masks the true momentum of the services economy. By consolidating data from 19 service sub-sectors—14 of which showed double-digit annual growth in April 2026—the government intends to create a more transparent and responsive economic dashboard. This initiative follows recent PMI data, which showed a robust, albeit slightly softening, expansion in the services sector, with the July Services PMI at 59.8.

The implementation of the ISP will likely provide policymakers and investors with a more granular understanding of service-led growth. As the Ministry of Statistics and Programme Implementation refines these trial indices, the market can expect better-informed economic forecasts, potentially reducing the uncertainty that currently surrounds the services sector's contribution to India's overall GDP growth trajectory.