1 month ago

India's Services Sector Growth Slows in May

India's Services Sector Growth Slows in May
Services sector growth may have fallen sharply in May, suggests MoSPI’s experimental data · indianexpress.com

The Indian government has started a new way to measure how well the services sector is doing each month.

This sector is very important because it makes up more than half of India's economy.

The new data shows that the growth of this sector slowed down a lot in May compared to April.

Even though some parts of the services sector, like hotels and food services, did well, most parts grew less in May than in April.

The government is still testing this new way of measuring, so they are not giving an overall growth number yet.

Experts have different opinions about what this means for the future.

Some think it shows good growth momentum, while others think it shows a slowdown.

Key facts

Base Year
2024-25
Services Sector Growth (April)
20.5%
Services Sector Growth (May)
9.5%
Industry Growth (May)
5%
Accommodation and Food Growth (May)
27.4%
IT and Computer Services Growth (May)
10.3%
Services PMI (May)
59.8
Services PMI (April)
58.8

Quotes

DK Srivastava

EY India’s Chief Policy Advisor

“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%”
indianexpress.com

Sources

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