Index of Service Production: NSO’s New Services Tracker
Why in the news
The National Statistics Office floated a monthly indicator for services, often described as the ‘IIP for services’, to fix a long-standing gap in timely data on the sector.
Key facts
- Base year: 2024-25.
- Purpose: high-frequency tracking of services, which give over 50% of GVA.
- Earlier practice: policy relied on delayed quarterly GDP or proxies such as railway freight and air passenger traffic.
- Coverage: roughly 70% of services GVA, market-oriented segments only.
- Global practice: developed economies like the UK and OECD members already use such an index.
| Data pillar | Role |
|---|---|
| GST Network (GSTN) outward supplies | Cornerstone proxy for turnover of service providers |
| Sectoral administrative data | Monthly figures from ministries such as civil aviation, telecom and railways |
| ASISSE (Annual Survey of Incorporated Services Sector Enterprises) | Baseline for GVA, turnover and employment |
Sector coverage
- Trade and hospitality
- Transport and logistics
- Information and technology
- Finance and real estate
- Excluded: non-market services such as public administration and defence, exempt from GST and not turnover-based
Background
- GVA: value of goods and services produced in a sector; GVA = GDP + subsidies – taxes on products.
- A recent base year captures post-pandemic structure, digital services and current consumption patterns.
- Monthly data lets the RBI and government respond faster than waiting for quarterly GDP.
Exam angle
- Proposed by NSO; base year 2024-25.
- Called the ‘IIP for services’.
- Related terms: GSTN, ASISSE, GVA, high-frequency indicator.