Serving the economic cause of services
The Ministry of Statistics is launching a trial Index of Services Production (ISP) to offer a high-frequency economic snapshot and guide policy. Despite inherent complexities and data constraints, this initiative positions India among a few nations attempting direct service sector estimation. Key challenges include the exclusion of the informal economy, which significantly contributes to output, and the reliance on proxy price deflators for various services. Additionally, critical sectors like health and education are omitted. While acknowledging these limitations, the author credits the government for this ambitious undertaking, viewing the ISP as a directional tool requiring continuous refinement for real-time economic analysis.
Economic Times · ET Bureau · Jul 12, 2026 at 6:24 PM