Overview
The ISP was released in a trial run for April 2026. Fourteen of the nineteen sub‑sectors recorded double‑digit growth, signalling strong momentum in the services segment of the economy.
Key Developments
- Fourteen sub‑sectors posted double‑digit growth; top performers were accommodation and food (37.2%), retail trade (30.8%), administrative & support services (28.7%) and real estate (27.7%).
- The IIP is released on the 28th of each month; the MoSPI will now publish the ISP on the 29th.
- Overall year‑on‑year growth for the 19‑sub‑sector sample is estimated at 20.8% for April 2026 over April 2025.
- The base year for the trial index is set as 2024‑25, and data sources include administrative records, GST returns and the ASISSE.
Important Facts
The 19 sub‑sectors measured represent roughly 60% of the total services sector. While the inaugural release does not give a composite index value, analysts can compute it using sector‑wise growth rates and their weightages. Experts, such as DK Srivastava of EY India, view the ISP as a “welcome development” that will eventually expand coverage beyond the current 60%.
Exam Relevance
Understanding the services sector is crucial for GS‑3 (Economy) questions on structural transformation, sectoral contributions to GDP, and statistical indicators. The launch of the ISP adds a high‑frequency tool comparable to the IIP, enabling aspirants to analyse short‑term trends and policy impacts.
Way Forward
MoSPI plans to broaden the ISP’s coverage gradually, eventually encompassing the entire services sector. A composite growth figure will likely be released in future editions, providing a clearer picture of sectoral health. Aspirants should monitor subsequent releases for changes in methodology, weightage revisions, and the inclusion of additional sub‑sectors, as these will affect economic assessments and answer writing in the UPSC mains.