11 hrs ago
India Considers UPI Data for Expanded Services Output Index
India is creating a new way to track how services are doing each month.
The statistics ministry wants to include education, health, government administration and defence.
It may use UPI payments to help measure private schools and health services.
It may use government salary and spending records to measure public services.
A ministry advisory group had earlier said UPI data should not yet be used to calculate GDP because the data were not stable enough.
The ministry now says UPI use has become more stable.
If the proposal is adopted, the index would cover a larger share of the services sector.
The ministry is asking people to comment on the plan by October 16.
India’s statistics ministry is considering UPI payments and government salary data to measure education, health, public administration and defence services.
The proposed additions would expand the experimental Index of Services Production’s coverage from about 60% to around 78% of services-sector GVA.
UPI merchant category codes could identify private-sector payments, while government salaries would be drawn from the Public Financial Management System.
A ministry advisory sub-committee previously advised against using UPI transaction data to estimate GDP until the data stabilise.
The ministry says UPI transaction values and volumes now show a stabilising trend; comments on its approach paper are invited until October 16.
- Who
- The Ministry of Statistics and Programme Implementation (MoSPI) is proposing the measurement approach.
- What
- MoSPI is considering UPI payments and government salary and expenditure data to expand the Index of Services Production.
- Where
- India.
- When
- The approach paper was released on Tuesday; comments are invited until October 16. The index is being introduced experimentally starting July.
- Why
- The proposed methods would allow the index to include education, health, public administration and defence, which were not initially included because their output measurement methods had not been finalised.
Caution on using UPI data
Case for using UPI data in the ISP
Whether UPI data are ready for measurement
Caution on using UPI data
A sub-committee of the Advisory Committee on National Accounts Statistics advised against using payment transaction data to calculate GDP, saying the data were not yet stable and many people still used cash.
Case for using UPI data in the ISP
MoSPI says UPI transaction values and volumes show a clear stabilising trend after years of rapid growth, and proposes using the data as an indicator for private education and health services in the ISP.
Key facts
- Index
- The Index of Services Production (ISP), an experimental monthly measure of services activity.
- Current coverage
- The ISP covers 19 sub-sectors, representing about 60% of services-sector GVA in 2024–25.
- Proposed coverage
- Including the three proposed areas would raise coverage to around 78% of services-sector GVA.
- Proposed data for private services
- UPI payments for education and health services, identified using Merchant Category Codes.
- Proposed data for public services
- Government salaries from the Public Financial Management System; public administration and defence measurement would also include operational expenses.
- UPI education payments
- Rs 25,635 crore in August, according to NPCI data cited in the article.
- UPI hospital payments
- Rs 16,976 crore in August, according to NPCI data cited in the article.
- Comment deadline
- October 16.
Quotes
Sub-committee of the Advisory Committee on National Accounts Statistics
A ministry advisory sub-committee that reported on national accounts statistics.
“Looking forward, the trend strongly suggests that UPI is transitioning into a highly mature and resilient utility. Future growth is likely to flatten into a stable band.”
indianexpress.com
“Once the UPI transaction data get stabilised, it may be explored for possible inclusion as an indicator in the estimation of PFCE.”
indianexpress.com
Sources
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