1 month ago
Eight sectors post double-digit growth in May trial services index
In May 2026, India's trial Index of Services Production (ISP) showed that eight out of 19 tracked sectors grew by more than 10%.
This includes important areas like retail trade, accommodation and food, telecommunication, banking, and IT services.
The overall growth was 9.8%, which is less than the 20.8% growth seen in April.
Some sectors like air transport and broadcasting services saw a decline.
The ISP is a new way to measure the services sector, which makes up more than half of India's economy.
It uses data from Goods and Services Tax (GST) and other sources to track real output.
The goal is to have a monthly update on the services sector, similar to how the Index of Industrial Production (IIP) tracks manufacturing.
The data suggests strong growth in the services sector, but there are also some areas of concern, like the slowdown in certain sectors and the impact of external factors like the West Asian conflict.
Eight of 19 sectors tracked by India's trial Index of Services Production (ISP) posted double-digit growth in May 2026.
Overall growth in May was 9.8%, down from 20.8% in April 2026.
Key sectors with double-digit growth include retail trade, accommodation and food, telecommunication, banking, and IT services.
The ISP aims to provide a high-frequency measure of services activity, using GST data and other sources.
The index currently covers 19 sectors accounting for 60% of the services economy, with plans to expand coverage.
- Who
- India's Ministry of Statistics and Programme Implementation (MoSPI)
- What
- Release of the trial Index of Services Production (ISP) for May 2026
- Where
- New Delhi, India
- When
- Wednesday, May 2026
- Why
- To provide a high-frequency measure of services activity and validate the methodology before regular statistical releases
Optimistic View
Cautious View
Economic Growth
Optimistic View
The data shows robust growth in the services sector, indicating strong economic momentum.
Cautious View
The deceleration in growth from April to May and contraction in some sectors suggest potential risks.
Key facts
- Growth Rate in May 2026
- 9.8%
- Growth Rate in April 2026
- 20.8%
- Sectors with Double-Digit Growth
- Retail trade, accommodation and food, telecommunication, banking, IT and computer related services
- Average Growth for Key Services
- 10.3%
- IIP Growth in 1Q 2026-27
- 5.7%
- Services Sector Growth in 1Q 2026-27
- 15.3%
- Sectors Covered by ISP
- 19 sectors accounting for 60% of services economy
- Base Year for ISP
- 2024-25
Quotes
DK Srivastava
Chief policy advisor, EY India
“"As per the Index of Services Production (ISP), growth of the covered 19 services amounting to 60% of total services output was 9.8% in May 2026. This showed a slight deceleration from the growth of 20.8% in April 2026. The main services accounting for growth higher than 10% in this month are retail trade, accommodation and food, telecommunication, banking, and IT and computer related services"”
livemint.com
“"Average growth for eight key services accounting for nearly 87% of the total weight of the covered 19 services was 10.3% in May 2026. There are clear indications of a robust growth momentum for the 1Q 2026-27 with IIP growth in this quarter showing an average growth of 5.7% and services (ISP) sector for the first two months of this quarter showing an average growth of 15.3%"”
livemint.com










