Ministry of Statistics & Programme Implementation Releases Trial Index of Services Production (ISP)

Why in news

The Ministry of Statistics & Programme Implementation (MoSPI) has released the trial Index of Services Production (ISP) to gather feedback on its methodological framework. The ISP covers the formal sector, while the Annual Survey of Unincorporated Sector Enterprises (ASUSE) measures the unincorporated sector.

Exam relevance

GS3 · Economy, Governance · Prelims · Mains

Key facts

1. The Ministry of Statistics & Programme Implementation (MoSPI) has released the trial Index of Services Production (ISP).
2. The trial ISP is compiled for 19 sub-sectors using data of outward supplies from GST and other administrative data.
3. The ISP covers the formal sector of the economy.
4. The Annual Survey of Incorporated Service Sector Enterprises (ASISSE) covers the Incorporated Services Sector.
5. The Ministry undertakes the Annual Survey of Unincorporated Sector Enterprises (ASUSE) to measure the unincorporated sector of the economy.
6. ASUSE publishes quarterly and annual results.

Prelims pointers

• The Ministry of Statistics & Programme Implementation (MoSPI) releases the trial Index of Services Production (ISP).
• The ISP uses GST and other administrative data for compilation.
• The ISP covers the formal sector of the economy.
• The Annual Survey of Unincorporated Sector Enterprises (ASUSE) measures the unincorporated sector.
• ASUSE publishes quarterly and annual results.

Mains practice question

Discuss the importance of accurately measuring both the formal and unincorporated sectors of the economy. What are the challenges associated with measuring the services sector in India, and how can initiatives like the Index of Services Production (ISP) help address them?

Static linkage

The Ministry of Statistics and Programme Implementation (MoSPI) is the nodal agency for the planned development of the statistical system in the country, coordinating the statistical activities in the country, including the National Statistical System (NSS). It also acts as the Cadre Controlling Authority for the Indian Statistical Service (ISS) and Indian Economic Service (IES). The release of economic indicators like the Index of Services Production is crucial for understanding the health and structure of the economy.

Significance

The release of the trial Index of Services Production (ISP) is significant as it aims to improve the measurement of the services sector, which is a crucial component of the Indian economy. By seeking feedback on the methodological framework, MoSPI intends to enhance the accuracy and reliability of economic data. The distinction between the formal sector (covered by ISP) and the unincorporated sector (covered by ASU) highlights the challenges in capturing the complete economic activity, especially in a developing economy like India. This initiative contributes to better policy formulation and economic analysis.