Index of Services Production shows broad-based growth, 16 of 19 sub-sectors expand

New Delhi [India], July 29 (ANI): India's services sector witnessed broad-based expansion in May 2026, with 16 of the 19 sub-sectors covered under the Index of Services Production (ISP) recording positive year-on-year growth, according to the data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Wednesday.

The ministry also said eight of the 19 sub-sectors registered double-digit growth during the month compared with May 2025, indicating widespread strength across key segments of the services economy. The Index of Services Production is being released on an experimental basis with 2024-25 as the base year.

It stated, "8 out of the 19 sub-sectors recorded double-digit growth in May, 2026 as compared to May, 2025. 16 out of the 19 sub-sectors recorded positive growth in May, 2026".

Among the fastest-growing segments, Accommodation and Food Services led with 27.4 per cent growth, followed by Real Estate (17.7 per cent), Retail Trade (13.3 per cent), Banking (12.1 per cent) and Telecommunications (11.8 per cent).

Other sectors posting double-digit growth included Warehousing and Support Activities for Transportation (11.5 per cent), Professional, Scientific and Technical Services including R&D (11.0 per cent) and IT and Computer-related Services (10.3 per cent).

The ministry also stated that moderate growth was recorded in several other segments, including Repair Services (9.8 per cent), Water Transport (5.6 per cent), Administrative and Support Services (5.0 per cent), Road Transport (4.4 per cent), Wholesale Trade (3.7 per cent), Railway Transport (3.4 per cent), Insurance (2.7 per cent) and Arts, Entertainment and Recreation Services (1.6 per cent).

Three sub-sectors, however, contracted during the month. Information and Broadcasting declined 7.6 per cent, Air Transport fell 2.8 per cent, while Postal and Courier Services registered a 1.0 per cent decline compared with May last year.

MoSPI said the monthly Index of Services Production is currently being published on a trial basis to enable the ministry to assess data quality, test the resilience of the methodology and obtain feedback from stakeholders and users before wider adoption.

It also noted that the indices for the Railways, Banking and Insurance sub-sectors are based on provisional monthly data and will undergo annual revision. (ANI)

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