Archive · 8 Oct 2026
India Considers UPI Data to Expand Monthly Services Index
India wants to improve how it measures the services economy each month.
The statistics ministry is considering adding education, healthcare, public administration and defence to a new index.
UPI payments could help track activity at private schools, universities and hospitals.
Merchant Category Codes would help identify which payments are for those services.
Government salary records could help measure public education and healthcare.
Public administration and defence would also be measured using employee compensation and operating expenses.
An earlier advisory group said UPI data should not yet be used to calculate GDP because it was still changing and many people used cash.
The ministry now says UPI activity is becoming more stable.
The proposed additions could increase the index’s coverage from about 60% to around 78% of services-sector output.
MoSPI proposes using UPI payments and government salary records to measure education, healthcare, public administration and defence.
UPI Merchant Category Codes could help identify private-sector education and healthcare payments.
Government salaries would be sourced from the Public Financial Management System; public administration and defence would also include operating expenses.
The proposed additions would raise the Index of Services Production’s coverage from about 60% to around 78% of services-sector GVA.
An earlier advisory sub-committee cautioned against using UPI data for GDP calculations until transactions stabilise; MoSPI now says UPI growth is stabilising and invites comments until October 16.
- Who
- The Ministry of Statistics and Programme Implementation is proposing the changes.
- What
- It is considering UPI payments and government expenditure data to expand the Index of Services Production.
- When
- The approach paper was released on Tuesday; comments are invited until October 16.
- Where
- India.
- Why
- The ministry wants to include major services that were initially excluded because suitable ways to measure their output had not been finalised.
Caution about UPI data
MoSPI’s case for using UPI data
Readiness for economic measurement
Caution about UPI data
An advisory sub-committee said UPI transaction data was not yet stable and many people still used cash; it suggested considering the data for PFCE once they stabilised.
MoSPI’s case for using UPI data
MoSPI says UPI has entered a more mature phase and transaction values and volumes show a stabilising trend, supporting its proposed use as an indicator for private education and healthcare activity in the ISP.
- Index
- The experimental Index of Services Production is a monthly measure intended to track services activity.
- Current coverage
- The index covers 19 sub-sectors, representing about 60% of services-sector GVA in 2024-25.
- Proposed coverage
- Adding education, healthcare, public administration and defence would raise coverage to around 78% of services-sector GVA.
- UPI education payments
- About Rs 25,635 crore in August.
- UPI hospitals payments
- About Rs 16,976 crore in August.
- UPI government-services payments
- About Rs 17,487 crore in August.
- Comment deadline
- October 16.
