MoSPI proposes Index of Service Production with 2024-25 as base year

Ministry Proposes Index of Services Production Using GST Data

The Ministry of Statistics and Programme Implementation has proposed creating an Index of Services Production (ISP) for the formal sector using Goods and Services Tax (GST) data, with 2024–25 as the base year.

Key Features of the Index

Tracks key service segments such as trade, transport, banking, insurance, hospitality, real estate, and professional services
Will complement the Index of Industrial Production by offering high-frequency insights into the services economy
Will cover sub-sectors such as wholesale and retail trade, transport, banking, insurance, communication, hotels and restaurants, real estate, professional, scientific and technical services, arts, entertainment and recreation

Methodology

The Ministry of Statistics and Programme Implementation (MoSPI) suggested using administrative data from sectoral ministries and the Annual Survey of Incorporated Services Sector Enterprises.

Will use different deflators for different sub-sectors: the Wholesale Price Index (WPI), Consumer Price Index (CPI), Gross Value Added (GVA) and Service Producer Price Index (SPPIs)
Will align the CPI base year to 2024-25 using base-shifting and splicing methods
Will use 2022-23 as the base year for WPI, GVA and SPPIs, and will be aligned to 2024-25 using base-shifting and splicing methods

Limitations

The approach paper noted some limitations in the trial indices, including:

Limited availability of SPPIs
Lack of data for sectors accounting for nearly 33% of GVA
Reliance on GST data, which excludes small service providers with turnover below Rs 20 lakh

Feedback Invited

MoSPI has invited feedback on the methodology from experts, government bodies, and stakeholders by May 5.