New Delhi: India’s services sector witnessed broad-based expansion in May 2026, with 16 out of 19 sub-sectors covered under the Index of Services Production (ISP) registering positive year-on-year growth, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI). Eight of these sub-sectors recorded double-digit growth, reflecting strong momentum across key segments of the economy.
Hospitality, Real Estate and Banking Lead Growth
Among the fastest-growing sectors, Accommodation and Food Services topped the list with 27.4 percent growth, followed by Real Estate Services (17.7 percent), Retail Trade (13.3 percent), Banking (12.1 percent), and Telecommunications (11.8 percent).
Other sectors that posted double-digit growth included Warehousing and Support Activities for Transportation (11.5 percent), Professional, Scientific and Technical Services (11 per cent) and Information Technology and Computer-related Services (10.3 percent).
Repair services grew 9.8 percent, while Water Transport (5.6 percent), Administrative and Support Services (5 percent), Road Transport (4.4 percent), Wholesale Trade (3.7 percent), Railway Transport (3.4 percent), Insurance (2.7 percent), and Arts, Entertainment and Recreation (1.6 percent) also registered positive growth.
Three Sectors Record Contraction
Only three sub-sectors recorded a decline during the month. Information and Broadcasting contracted 7.6 per cent, Air Transport fell 2.8 per cent, while Postal and Courier Services declined 1 per cent compared to May 2025.
New Monthly Indicator for Services Economy
MoSPI said the ISP has been compiled with 2024-25 as the base year and is currently being released as a trial series to assess data quality and gather stakeholder feedback before the launch of the overall services production index.
The ministry said the monthly sub-sectoral ISP provides, for the first time, a high-frequency indicator tracking short-term movements in India’s formal services sector, covering nearly 60 per cent of the sector. The overall Index of Services Production will be introduced after further evaluation of the stability and coverage of the sub-sectoral indices.