India’s services sector expanded broadly in May 2026, with 16 of 19 sub-sectors showing positive year-on-year growth. Eight sub-sectors, led by Accommodation and Food Services, recorded double-digit growth, per MoSPI’s experimental ISP data.
Sector-wise Performance
Among the fastest-growing segments, Accommodation and Food Services led with 27.4 per cent growth, followed by Real Estate (17.7 per cent), Retail Trade (13.3 per cent), Banking (12.1 per cent) and Telecommunications (11.8 per cent). Other sectors posting double-digit growth included Warehousing and Support Activities for Transportation (11.5 per cent), Professional, Scientific and Technical Services including R&D (11.0 per cent) and IT and Computer-related Services (10.3 per cent).The ministry also stated that moderate growth was recorded in several other segments, including Repair Services (9.8 per cent), Water Transport (5.6 per cent), Administrative and Support Services (5.0 per cent), Road Transport (4.4 per cent), Wholesale Trade (3.7 per cent), Railway Transport (3.4 per cent), Insurance (2.7 per cent) and Arts, Entertainment and Recreation Services (1.6 per cent).Three sub-sectors, however, contracted during the month. Information and Broadcasting declined 7.6 per cent, Air Transport fell 2.8 per cent, while Postal and Courier Services registered a 1.0 per cent decline compared with May last year.
About the Index
MoSPI said the monthly Index of Services Production is currently being published on a trial basis to enable the ministry to assess data quality, test the resilience of the methodology and obtain feedback from stakeholders and users before wider adoption.It also noted that the indices for the Railways, Banking and Insurance sub-sectors are based on provisional monthly data and will undergo annual revision. (ANI)(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)