SF Prep Notes

MoSPI releases approach paper on an Index of Service Production for the formal sector

The Ministry of Statistics and Programme Implementation on 27 April 2026 released an approach paper on compiling an Index of Service Production (ISP) for the formal sector, drawing on GST data, and invited stakeholder comments.

Summary

An approach paper on compiling an Index of Service Production (ISP) for the formal sector of the economy was released by the Ministry of Statistics and Programme Implementation (MoSPI) on 27 April 2026 for stakeholder comments. India has no index to capture short-term movements in services, unlike the Index of Industrial Production (IIP) for industry, even though services contribute more than half of GDP. The paper draws on the data made available by the Goods and Services Tax (GST) and other digitised administrative sources to fill this gap.

Key facts

Released
27 April 2026, MoSPI (NSO)
Subject
Index of Service Production (ISP), formal sector
Gap
No short-term index for services, unlike IIP for industry
Services share
More than half of India's GDP
Data source
GST and other digitised administrative data

Practice MCQs 2 questions

Q1 Advanced

MoSPI's April 2026 approach paper proposes an index to capture short-term movements in which sector?

Show answer

Correct answer: B — Services

The paper is on compiling an Index of Service Production (ISP) for the formal sector, as there is no short-term index for services unlike the IIP for industry.

Q2

Which data source does MoSPI's approach paper on the Index of Service Production draw on?

Show answer

Correct answer: D — Goods and Services Tax (GST) data

The approach paper relies on GST data along with other digitised administrative sources.

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