2 days ago

India Services Growth Leads Broad Economic Expansion in June

Government data showed that most parts of India’s services sector grew in June 2026.

Real estate grew the fastest, rising 24.7% from a year earlier.

Retail and wholesale businesses also recorded strong growth.

IT and computer-related services increased by 13.5%.

Eighteen of the 19 services categories grew.

The data also showed that India’s economy grew 7.8% in the first quarter of FY27.

This was faster than the Reserve Bank of India’s earlier prediction of 7%.

Together, the figures suggest that economic activity remained strong despite difficult conditions around the world.

Key facts

Services index: June 2026 Index of Services Production covering 19 sub-sectors, with 2024-25 as the base year.
Top-performing sub-sector: Real estate grew 24.7% year on year.
Retail and wholesale growth: Retail trade grew 18%, while wholesale trade grew 15.1%.
IT services growth: IT and computer-related services grew 13.5%.
Positive services sub-sectors: 18 of 19 sub-sectors recorded positive growth in June 2026.
Real GDP: Q1 FY27 real GDP was estimated at ₹81.36 lakh crore, up 7.8% year on year.
Nominal GDP: Q1 FY27 nominal GDP was estimated at ₹88.27 lakh crore, up 10.3% year on year.

livemint.com · 2 days ago