16 of 19 services sub-sectors record positive growth in May: MOSPI
New Delhi, July 29
As many as 16 of the 19 sub-sectors covered by the Index of Services Production recorded a positive growth year-on-year in May this year with eight of them reporting a double-digit surge, according to data released by the Ministry of Statistics and Programme Implementation on Wednesday.
The top sub-sectors reporting strong growth include Accommodation and Food services which registered the highest growth of 27.4 per cent, with its index rising to 148.9 in May 2026 from 116.9 a year earlier.
Real estate services recorded 17.7 per cent growth, followed by retail trade at 13.3 per cent, banking at 12.1 per cent and telecommunications at 11.8 per cent.
Warehousing and support activities for transportation grew 11.5 per cent, while professional, scientific and technical services, including research and development, expanded 11 per cent. Information technology and computer-related services grew 10.3 per cent.
Repair services grew 9.8 per cent, while water transport expanded 5.6 per cent.
Administrative and support services recorded growth of 5 per cent, followed by road transport at 4.4 per cent, wholesale trade at 3.7 per cent and railway transport at 3.4 per cent.
Insurance services grew 2.7 per cent, while arts, entertainment and recreation services expanded 1.6 per cent.
The three sub-sectors that contracted during the month were information and broadcasting which declined 7.6 per cent, air transport dipped 2.8 per cent, and postal and courier services shrank 1 per cent.
The indices have been compiled with 2024-25 as the base year. The monthly ISPs are being published on an experimental basis. The publication of the Trial Series would enable MoSPI to examine data quality, test its resilience and also receive feedback from stakeholders and users, according to a MOSPI statement.
The indices for the railway, banking and insurance sub-sectors are based on provisional monthly data and will be revised annually, the Ministry's statement said.
The earlier figures for April 2026 released by MOSPI recently showed that 14 out of the 19 sub-sectors recorded double-digit growth during the month as compared to April 2025 in the first sub-sectoral Trial Index of Services Production (ISP) with base year 2024-25.
The release of sub-sectoral ISPs will provide, for the first time, a monthly measure of short-term movements in India's formal services sector, with a coverage of about 60 per cent.
Overall ISP will be brought out later after studying stability and resilience of sub-sectoral ISPs and improved overall coverage of services, MOSPI said.
— IANS
Reader Comments
The 16 out of 19 sub-sectors showing growth is encouraging, but let's not get too excited. The base effect from last year might be inflating these numbers. We need consistent growth for at least 3-4 months to confirm a real recovery.
Interesting to see real estate at 17.7% growth. With property prices rising in major cities, this reflects the sustained demand. Banking at 12.1% is also positive, likely driven by higher credit offtake and digital transactions. Good signs for the economy.
Finally some positive news! The IT sector growing at 10.3% shows Indian tech continues to lead globally. But I'm concerned about air transport declining 2.8% - maybe high fuel costs and competition are hurting. Need better policies for aviation sector ✈️
Impressive data from MOSPI! The fact that this is a trial series with base year 2024-25 makes it even more important. However, I wish they'd also include more informal sector data, since that's a huge part of India's services economy. Still, baby steps in the right direction!
Good to see retail trade at 13.3% - shows people are spending again. But inflation is still a concern. The RBI needs to ensure growth doesn't come at cost of price stability. Also, why is information and broadcasting down 7.6%? Is OTT taking over traditional media? 🤔
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