New Delhi, July 15 (IANS) With the introduction of the Index of Services Production (ISP), India is advancing its statistical system with global standards, as services sector has become a key driver of economic growth and employment generation and the government aims to position the country as a world leader in services, targeting a 10 per cent share in global services by 2047.

According to an official factsheet, the ISP is India’s first high-frequency indicator dedicated to measuring services sector output.

It tracks short-term changes in the volume of output produced by the formal services sector relative to a specified base year.

The services sector is the largest contributor to India’s GDP, contributing over 50 per cent of the Gross Value Added (GVA) since 2013-14. In 2024-25, share of services GVA stood close to 52.9 per cent.

The sector accounts for 30 per cent of total employment across India and generated 40 million jobs over the past six years. India’s services exports maintained strong momentum in FY2026-27.

In April-June 2026-27, services exports are estimated at $103.41 billion, registering a 6.16 per cent annual growth.

According to the factsheet, as the services sector is central to India’s growth, a dedicated short-term indicator to track its performance has become essential.

The Index of Industrial Production (IIP) measures only industrial activity and does not capture short-term trends in the services sector. To address this gap, the Government has introduced the ISP, the statement added.

According to the first sub-sectoral trial ISP for 19 sub-sectors for April 2026, covering 60 per cent of the services sector, 14 sectors recorded double-digit growth in April as compared to April 2025.

Top five sub–sectors with strong monthly growth include accommodation and food (37.2 per cent), retail trade (30.8 per cent), administrative and support services (28.7 per cent), real estate (27.7 per cent) and telecommunications (22.8 per cent).

According to the factsheet, by bringing high-frequency data and robust methodology together, the ISP offers timely insights into India’s largest economic sector.

—IANS

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