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Eight sectors post double-digit growth in May trial services index

Eight sectors post double-digit growth in May trial services index
Eight sectors post double-digit growth in May trial services index · livemint.com

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.

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

Sources

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