Services Sector
Services sector output improves Jul, 10 sub-sectors see double-digit growth
This story was originally published at 17:05 IST on 29 September 2026
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--India Jul wholesale trade services output growth 12.1%
--CONTEXT: Govt releases Index of Services Production for July
--India Jul retail trade services output growth 18.5%
--India Jul accommodation, food services output growth 12.6%
--India Jul railway transport services output growth 7.5%
--India Jul road transport services output growth 9.9%
--India Jul water transport services output growth 7.7%
--India Jul air transport services output growth -8.4%
--India Jul warehousing services output growth 9.8%
--India Jul postal, courier services output growth 8.7%
--India Jul telecom services output growth 11.0%
--India Jul information, broadcasting services output growth 10.0%
--India Jul banking services output growth 12.3%
--India Jul insurance services output growth 8.9%
--India Jul real estate services output growth 14.4%
--India Jul IT, computer-related services output growth 10.7%
--India Jul scientific services output growth 10.4%
--India Jul administrative services output growth 20.9%
--India Jul arts, entertainment services output growth 1.7%
NEW DELHI – Growth in India's services production improved in July, with 10 of the 19 sub-sectors reporting double-digit growth as compared to June, data released Tuesday by the statistics ministry showed. Sub-sectors such as administrative services, retail trade, and real estate showed the strongest growth in July, the statistics ministry said. That said, 17 sub-sectors recorded growth in July compared to 18 in June.
The output of administrative services rose 20.9% on year in July, against 14.4% in June. Retail trade output grew 18.5% in July from 18.0% a month ago.
The Ministry of Statistics and Programme Implementation is releasing the trial Index of Services Production to measure short-term changes in the growth of India's formal services sector. The 19 sub-sectors listed by the ministry cover about 60% of the services sector. This index, with 2024-25 (Apr-Mar) as the base year, will serve as a counterpart to the Index of Industrial Production, which measures the economic growth of the industrial sector.
Last month, the trial Index of Services Production for June showed double-digit growth in only eight sub-sectors, including real estate, retail trade, and wholesale trade.
In July, real estate was another sub-sector that reported double-digit output growth of 14.4%. However, the sector's output growth eased from 24.7% in June.
The output of accommodation and food services rose 12.6% in July compared to 10.2% growth in June. Among financial services, the banking and insurance sub-sectors posted growth of 12.3% and 8.9%, respectively. These sub-sectors had reported 11.4% and 9.6% growth, respectively, in June.
Sub-sectors wholesale trade, telecommunications, and computer related services saw growth of 12.1%, 11.0%, and 10.7% on year, respectively, in July.
On the other hand, the output of air transport services continued to be in negative territory. The sub-sector reported contraction of 8.4% in July, against contraction of 6.0% in June. The output of repair services contracted 5.0% in July, against growth of 7.5% in June.
The experimental indices will track the goods and services tax, the Annual Survey of Incorporated Services Sector Enterprises, and other administrative data to map the formal services sector output. Some of the services excluded from the indices as of now are public administration and defence, financial services activities of the Reserve Bank of India, money market funds, activities of private households with employed persons, and gambling and betting activities. These services have been excluded from the scope of Index of Services Production due to lack of coverage under different data sources.
The following table details year-on-year changes in services sector output in July and June:
| SERVICES SUB-SECTORS | July 2026 | June 2026 |
| Wholesale Trade | 12.1% | 15.1% |
| Retail Trade | 18.5% | 18.0% |
| Repair Services | (-)5.0% | 7.5% |
| Accomodation and food | 12.6% | 10.2% |
| Railway Transport | 7.5% | 3.3% |
| Road Transport | 9.9% | 9.7% |
| Water Transport | 7.7% | 6.9% |
| Air Transport | (-)8.4% | (-)6.0% |
| Warehousing and support activities for transportation | 9.8% | 11.8% |
| Postal and Courier | 8.7% | 5.0% |
| Telecommunications | 11.0% | 9.5% |
| Information and Broadcasting | 10.0% | 4.6% |
| Banking | 12.3% | 11.4% |
| Insurance | 8.9% | 9.6% |
| Real Estate | 14.4% | 24.7% |
| IT and computer related services | 10.7% | 13.5% |
| Professional, scientific & technical services | 10.4% | 9.1% |
| Administrative and support services | 20.9% | 14.4% |
| Arts, Entertainment and Recreation Services | 1.7% | 6.1% |
Source: Ministry of Statistics and Programme Implementation
End
Reported by Shweta
Edited by Avishek Dutta
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