MoSPI to Launch Index of Services Production with 2024-25 as Base Year
The Ministry of Statistics and Programme Implementation (MoSPI) has proposed creating an Index of Services Production (ISP) for the formal sector using GST data, with 2024-25 as the base year. The index will track key service segments including trade, transport, banking, insurance, hospitality, real estate, and professional services on a monthly basis. The ISP will complement the existing Index of Industrial Production (IIP) by providing high-frequency insights into the services economy.
Key Facts & Details
10 points- 1MoSPI proposes Index of Services Production (ISP) with 2024-25 as base year
- 2ISP will use GST data to track formal sector services output monthly
- 3Sectors covered: trade, transport, banking, insurance, hospitality, real estate, professional services
- 4ISP will complement the existing Index of Industrial Production (IIP)
- 5Services sector accounts for over 55% of India's GDP
- 6High-frequency monthly data will help policymakers track economic momentum
Deep Dive
- +Currently India lacks a formal monthly services production index, unlike IIP for manufacturing
- +GST data provides a comprehensive and real-time picture of formal service sector activity
- +Services sector is the largest employer in India after agriculture
- +The index will be released with a lag of about 6 weeks after the reference month
Exam Focus
Likely MCQ: Which ministry has proposed the Index of Services Production (ISP)? Answer: MoSPI
Related Topics
Exam Relevance & Angle
Economy & Banking: Statistical indices, IIP, GDP composition, and MoSPI are regularly tested topics in Banking, UPSC, and SSC exams.
Target Exams
Background & Context
The Index of Industrial Production (IIP), released monthly by MoSPI, tracks industrial output in manufacturing, mining, and electricity. India has lacked a similar high-frequency tracker for the services sector despite services contributing over 55% of GDP.
The proposed ISP will use GST filing data as a proxy for services output, leveraging India's digital tax infrastructure to create a near real-time economic indicator.
Related GK Concepts
Must KnowTest Yourself
1 / 3Which ministry has proposed the Index of Services Production (ISP)?
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