Explanation -
ISP aims to track short-term movements in the services sector. It will be similar in concept to IIP but for services. It will be developed by the National Statistical Office (NSO).
What Will the ISP Cover?
The approach paper studies 40+ service sub-sectors, including:
- Trade (wholesale & retail)
- Transport
- Banking and insurance
- Communication
- Hotels and restaurants
- Real estate
- Professional and technical services
- Entertainment and recreation
Focus is on availability of output data and price deflators.
Methodology and Global Alignment —
Based on international best practices. Includes methods for:
- Data standardisation
- Use of price deflators (to adjust for inflation)
What Data Sources Will the ISP Use?
MoSPI plans to draw from three key data sources:
- GST Network (GSTN) Data — Provides information on production and outward supplies across different sectors and will serve as the primary data source for monitoring services sector output. However, sectors exempt from GST — such as health and education — cannot be captured through this route.
- Administrative Data from Ministries and Organisations — Sector-specific data from relevant government bodies will supplement GSTN data for sectors not covered by GST.
- Annual Survey of Incorporated Services Sector Enterprises (ASISSE) — MoSPI's own enterprise survey, currently being conducted, will provide additional granularity.
It should be note that all three data sources exclude the informal services sector. The excluded segments — due to data unavailability — account for nearly 33% of total GVA of the services sector.
Specifically, health and education (which will be excluded until ASISSE results are available) alone account for nearly 10% of services sector GVA.
How Will Output be Adjusted for Prices?
To convert nominal output into real output (adjusted for price changes), a Producer Price Index (PPI) would ideally be used — as it measures the prices received by producers.
However, since India does not yet have a comprehensive PPI, MoSPI plans to use non-food CPI and sub-sector specific CPI as proxies in the interim.
DPIIT is currently working on revising the Wholesale Price Index (WPI) and developing a full Producer Price Index (PPI).
A Working Group has recommended methodologies for compiling PPIs for services sub-sectors like Banking, Insurance, Securities, Pensions, Air Transport, Railways, and Telecom.
Explanation -
ISP aims to track short-term movements in the services sector. It will be similar in concept to IIP but for services. It will be developed by the National Statistical Office (NSO).
What Will the ISP Cover?
The approach paper studies 40+ service sub-sectors, including:
- Trade (wholesale & retail)
- Transport
- Banking and insurance
- Communication
- Hotels and restaurants
- Real estate
- Professional and technical services
- Entertainment and recreation
Focus is on availability of output data and price deflators.
Methodology and Global Alignment —
Based on international best practices. Includes methods for:
- Data standardisation
- Use of price deflators (to adjust for inflation)
What Data Sources Will the ISP Use?
MoSPI plans to draw from three key data sources:
- GST Network (GSTN) Data — Provides information on production and outward supplies across different sectors and will serve as the primary data source for monitoring services sector output. However, sectors exempt from GST — such as health and education — cannot be captured through this route.
- Administrative Data from Ministries and Organisations — Sector-specific data from relevant government bodies will supplement GSTN data for sectors not covered by GST.
- Annual Survey of Incorporated Services Sector Enterprises (ASISSE) — MoSPI's own enterprise survey, currently being conducted, will provide additional granularity.
It should be note that all three data sources exclude the informal services sector. The excluded segments — due to data unavailability — account for nearly 33% of total GVA of the services sector.
Specifically, health and education (which will be excluded until ASISSE results are available) alone account for nearly 10% of services sector GVA.
How Will Output be Adjusted for Prices?
To convert nominal output into real output (adjusted for price changes), a Producer Price Index (PPI) would ideally be used — as it measures the prices received by producers.
However, since India does not yet have a comprehensive PPI, MoSPI plans to use non-food CPI and sub-sector specific CPI as proxies in the interim.
DPIIT is currently working on revising the Wholesale Price Index (WPI) and developing a full Producer Price Index (PPI).
A Working Group has recommended methodologies for compiling PPIs for services sub-sectors like Banking, Insurance, Securities, Pensions, Air Transport, Railways, and Telecom.