Industry Odisha Bureau, Jul 11: In order to gather vital information so that it could enable better policy decisions and economic forecasts, the launch of Index of Services Production (ISP) by the Ministry of Statistics and Programme Implementation (MoSPI) is reportedly a monthly indicator to track activity as well as measure output in the formal services sector deemed to be India’s largest economic sector.
Notably, India’s formal services sector reportedly “contributes more than 53% of India’s gross value added (GVA) and have become the principal driver of growth, investment and exports.”
While the ISP would further strengthen India’s statistical system, it has reportedly been claimed to have been “designed to complement the Index of Industrial Production (IIP) and also to act as a timely barometer of economic activity for the country’s policymakers, businesses and investors.”
It has further been reported that, “Despite India’s economy having shifted from manufacturing to services, the country lacked a monthly indicator to track activity in the services sector for which the policymakers were bound down to rely on indirect sources like the Goods and Services Tax (GST) collections, the Purchasing Managers’ Index (PMI) and bank credit.”
