Govt plans to expand services index to cover 80% of sector output
Distilled Policy Brief
- The Ministry of Statistics and Programme Implementation (MoSPI) plans to expand the monthly Index of Services Production (ISP) to cover roughly 80% of India's services-sector GVA, up from about 60%.
- The proposed expansion incorporates education, healthcare, residential care, public administration, and defence by using a hybrid framework combining transaction indicators for market activities and cost-of-production measures for non-market public services.
- The framework utilizes data sources such as the Public Financial Management System (PFMS), UPI merchant-category-code transactions, and CAG State Accounts, while addressing data limitations like state-level expenditure availability and payment volatility.
🎯 Prelims High-Yield Examination Points
The Index of Services Production (ISP) is compiled by the Ministry of Statistics and Programme Implementation (MoSPI) using 2024-25 as the base year, and incorporates data sources like PFMS, UPI transactions, and CAG State Accounts.
⚖️ Mains Analytical & Syllabus Linkages
Discuss the significance of expanding high-frequency economic indicators like the Index of Services Production (ISP) to capture non-market and public services, and examine the associated methodological challenges in measuring the services sector.
🎯 UPSC Prelims Practice Drill
With reference to the bilateral research and industrial cooperation engagements between India and Germany, consider the following statements: 1. Roundtables held with German research organizations, such as the Fraunhofer Institutes, prioritized key fields including microelectronics, power electronics, and smart manufacturing. 2. Expanding industry-academia innovation networks and collaboration in battery technologies form key components of the enhanced strategic cooperation. Which of the statements given above is/are correct?
- [A] 1 only
- [B] 2 only
- [C] Both 1 and 2
- [D] Neither 1 nor 2
▶ Reveal Official Answer & Analytical Explanation
Both statements are correct. High-level roundtables with German research institutes, including Fraunhofer Institutes, focused on microelectronics, power electronics, smart manufacturing, battery technologies, and logistics. Furthermore, the engagement emphasized strengthening industry-academia innovation networks, science and technology cooperation, and advanced manufacturing capabilities between India and Germany.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.