New Monthly Production Index to Enhance Tracking of India’s Services-Led Growth
New Delhi: In a significant step towards strengthening economic data monitoring, the Government of India is set to launch a Monthly Production Index for the services sector in July, providing policymakers, businesses and investors with a more comprehensive view of the country's economic performance.
The new index is expected to bridge a key data gap by offering high-frequency insights into the services sector, which contributes more than half of India's Gross Domestic Product (GDP) and serves as a major driver of economic growth, employment and investment.
Officials said the initiative is aimed at improving the measurement of economic activity by providing timely indicators on output trends across major service industries. The index will enable stakeholders to track growth patterns more accurately and assess the health of the economy on a monthly basis.
The move comes at a time when India's services sector continues to play a crucial role in supporting economic expansion, driven by strong performance in areas such as financial services, information technology, telecommunications, transport, hospitality and professional services.
Experts believe the introduction of the monthly index will strengthen India's statistical infrastructure and align economic reporting standards with leading global economies that already publish high-frequency services data.
The index is also expected to assist policymakers in making quicker and more informed decisions by providing real-time insights into sectoral performance, demand conditions and emerging economic trends.
Industry analysts have welcomed the initiative, noting that improved data availability can enhance transparency, support investment planning and provide greater clarity on the pace and direction of economic growth.
The launch of the Monthly Production Index reflects the government's continued efforts to modernise economic data systems and improve the quality of information available for policy formulation and business decision-making.