Accommodation, banking and retail sectors lead expansion in trial index
Key Highlights
- 16 of 19 service sectors recorded annual growth.
- Eight sectors posted double-digit expansion.
- Accommodation and food services led with 27.4% growth.
- Banking, telecom and retail showed strong performance.
- Air transport and broadcasting witnessed contraction.
- Trial ISP uses FY2024-25 as the base year.
- MoSPI will refine the index based on stakeholder feedback.
The Ministry of Statistics and Programme Implementation (MoSPI) has released the second trial edition of India’s Index of Services Production (ISP), showing continued strength across the country’s formal services sector during May 2026.
According to the index, 16 out of 19 service sub-sectors registered positive annual growth, while eight sectors posted double-digit expansion.
Accommodation and food services emerged as the fastest-growing segment with 27.4% growth, followed by real estate (17.7%), retail trade (13.3%), banking (12.1%), and telecommunications (11.8%).
Only three sectors recorded negative growth during the month. Air transport declined by 2.8%, post and courier services fell 1%, while information and broadcasting contracted by 7.6%.
The Index of Services Production is being released on a trial basis with FY2024-25 as the base year. The government said the experimental series will help improve data quality, strengthen methodology, and gather feedback from stakeholders before the official rollout.
MoSPI added that certain sectors, including railways, banking, and insurance, are currently based on provisional monthly data and will be revised annually as more comprehensive information becomes available.
The new index is expected to provide policymakers and businesses with a more accurate measure of activity across India’s fast-growing services sector, which contributes significantly to the country’s economic growth.
