Index of Services Production: 10 sub-sectors record double-digit growth in July
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India’s formal services activity showed a broad-based expansion in July, with 10 of the 19 sub-sectors tracked under the trial Index of Services Production (ISP) registering double-digit year-on-year growth, even as momentum remained uneven across segments.
According to data released by the Ministry of Statistics and Programme Implementation (MoSPI), 17 of the 19 sub-sectors recorded positive growth in July. Administrative and support services led the expansion with 20.9% growth, followed by retail trade at 18.5%, real estate at 14.4%, accommodation and food services at 12.6% and banking at 12.3%.
Growth broadens, but the mix shifts
The July reading marked an improvement in the breadth of growth from the preceding two months. Eight of the 19 sub-sectors had posted double-digit expansion in both May and June, compared with 14 in April. The number of sectors recording positive growth, however, eased to 17 in July from 18 in June.
The composition of growth also changed. Administrative and support services accelerated sharply from 14.4% in June and 5% in May, while retail trade remained broadly steady after growing 18% in June. Real estate, despite remaining among the fastest-growing segments, moderated sharply from 24.7% in June. IT and computer-related services also slowed to 10.7% from 13.5% in June.
Accommodation and food services, meanwhile, grew 12.6%, recovering from 10.2% in June but remaining well below the 37.2% expansion recorded in April.
Air transport remains a drag
Air transport was the weakest-performing segment, contracting 8.4% in July after declining 6% in June and 2.8% in May. Repair services also contracted, by 5%.
The July figures are part of MoSPI’s experimental ISP series, introduced as a monthly counterpart to the Index of Industrial Production for services. The current framework covers 19 sub-sectors with 2024-25 as the base year and captures about 60% of the services sector.
MoSPI has cautioned that the series is still under trial to assess data quality and resilience. It has not yet released a composite headline growth rate for the ISP. The indices combine GST, administrative and other sector-specific data, while health and education are proposed to be incorporated later.
The services sector accounts for nearly 53% of India’s GVA, making the new monthly indicator an important addition to high-frequency economic data.