Archive · 31 Aug 2026
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.
The Ministry of Statistics and Programme Implementation said eight of 19 services sub-sectors posted double-digit growth in June 2026.
Real estate led growth at 24.7%, followed by retail trade at 18% and wholesale trade at 15.1%.
Administrative and support services grew 14.4%, while IT and computer-related services rose 13.5%.
Overall, 18 of the 19 tracked sub-sectors recorded positive year-on-year growth in June 2026.
India’s real GDP grew 7.8% in Q1 FY27, exceeding the Reserve Bank of India’s earlier 7% estimate.
- Who
- The Ministry of Statistics and Programme Implementation released the services data; the Reserve Bank of India provided the earlier GDP estimate.
- What
- The June 2026 Index of Services Production showed broad growth, while real GDP increased 7.8% in Q1 FY27.
- When
- The services comparison covers June 2026 versus June 2025; the GDP figures cover April-June 2026.
- Where
- India.
- Why
- The figures indicate continued momentum and resilience in domestic economic activity despite a challenging global environment and external headwinds.
- 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.