India Plans New Monthly Headline Services Index to Give Investors Real-Time Economic Gauge

India plans to roll out a headline Index of Services Production within months, the country's statistics secretary said, giving ​investors a single monthly gauge of output in the country's ‌dominant services sector for the first time.

The Ministry of Statistics and Programme Implementation released trial monthly indices  for 19 service sub-sectors covering about 60% of the formal ​services economy on Tuesday, but did not publish a composite headline ​measure.

Unlike manufacturing, which is tracked through the monthly Index of ⁠Industrial Production and surveys such as the PMI, India has no ​official monthly gauge for output across its dominant services sector.

"We are hoping ​that within the next few months we should be able to bring out a headline number also, with or without additional sectors," Statistics Secretary Saurabh Garg said ​in an interview late on Thursday.

The ministry is assessing whether to include ​additional sectors such as health and education before launching the composite index, although the ‌timeline ⁠will depend on the availability of reliable data, Garg said.

He said the headline index could initially be launched using the existing 19 sectors, while work continues to expand coverage beyond the current 60% of the ​formal services economy.

The trial ​data showed ⁠broad-based growth in April, with 14 of the 19 sub-sectors posting double-digit annual gains, led by accommodation and ​food services, retail trade and administrative services. Air transport ​contracted, while ⁠railway transport was broadly flat.

Garg said the monthly services index, together with labour, industrial and infrastructure indicators, would strengthen the government's ability to assess ⁠economic activity ​in real time and improve the compilation ​of quarterly national accounts.

"I am sure it will help in improving the robustness of the ​GDP number."

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