India's Services Sector Surges with Double-Digit Growth

In July 2026, India's services sector exhibited strong performance, as indicated by the fourth trial release of the Index of Services Production (ISP). Ten out of nineteen monitored sub-sectors recorded double-digit growth compared to the previous year, signaling continued dynamism in the formal services economy. This new index, with 2024-25 as its base year, offers a vital monthly assessment of services activity, which constitutes over half of India's economy.

Key growth areas included accommodation and food services (12.6%), retail trade (18.5%), and banking (12.3%). Conversely, air transport services saw an 8.4% contraction, influenced by geopolitical events and rising energy prices. Notably, postal, courier, information and broadcasting, and IT services all experienced significant expansion, growing by 8.7%, 10%, and 10.7% respectively.