The Ministry of Statistics has introduced a new monthly Index of Services Production (ISP) to track economic activity. April 2026 data shows 14 of 19 sub-sectors grew by double digits, led by strong gains in hospitality and retail. This tool provides investors with higher-frequency data on the services sector, which contributes over half of India's total economic output.
The Ministry of Statistics and Programme Implementation (MoSPI) has officially launched the Index of Services Production (ISP), a new high-frequency indicator designed to monitor short-term performance in India's massive services economy. As the services sector accounts for more than 50% of the country’s economic output, this monthly tracker provides a more timely view of business activity compared to traditional quarterly data.
April 2026 Performance and Growth Trends
The inaugural dataset for April 2026 covers 19 major sub-sectors, representing roughly 60% of the formal services economy. The data indicates strong momentum across most areas, with 14 sub-sectors achieving double-digit year-on-year growth. Leading the expansion was the Accommodation and Food Services segment, which grew by 37.2%. Retail Trade followed closely with a 30.8% increase, while Administrative and Support Services and Real Estate recorded gains of 28.7% and 27.7%, respectively.
Core service pillars also maintained robust activity levels during the month. Information Technology and Computer-related Services expanded by 15.2%, and the Insurance sector grew by 15.6%. Additionally, Wholesale Trade recorded a 15.3% increase, while the Banking sector showed steady performance with 12.2% growth compared to the same period last year.
Data Methodology and Economic Impact
The ISP uses 2024-25 as its base year to ensure relevant and modern benchmarking. To calculate these figures, MoSPI integrates multiple data sources, including Goods and Services Tax (GST) filings and administrative records from the Annual Survey of Incorporated Services Sector Enterprises. By utilizing high-frequency inputs like GST data, the index captures shifts in formal economic activity much faster than older survey-based metrics.
Currently, the index is being published on an experimental basis. This phase allows the government to refine data collection processes and incorporate feedback from industry experts and the Technical Advisory Committee on Index of Services Production, which was established in May 2025. By addressing data gaps, the ministry aims to eventually develop a comprehensive composite services production index.
For investors and policymakers, this new tool fills a significant information gap. Previously, the services sector—the largest component of the Indian economy—lacked a dedicated, high-frequency monthly tracker similar to the Index of Industrial Production (IIP). Future updates will be released on the 29th of each month. Market participants will likely track whether these growth trends remain consistent in subsequent months, as stable data will allow for better assessment of consumer demand, corporate expansion, and overall economic health.