Services sector data shows all but one sub-sector post growth in June
This story was originally published at 20:32 IST on 31 August 2026
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--India Jun wholesale trade services output growth 15.1%
--CONTEXT: Govt releases Index of Services Production for June
--India Jun retail trade services output growth 18.0%
--India Jun accommodation, food services output growth 10.2%
--India Jun railway transport services output growth 3.3%
--India Jun road transport services output growth 9.7%
--India Jun water transport services output growth 6.9%
--India Jun air transport services output growth -6.0%
--India Jun warehousing services output growth 11.8%
--India Jun postal, courier services output growth 5.0%
--India Jun telecom services output growth 9.5%
--India Jun information, broadcasting services output growth 4.6%
--India Jun banking services output growth 11.4%
--India Jun insurance services output growth 9.6%
--India Jun real estate services output growth 24.7%
--India Jun IT, computer-related services output growth 13.5%
--India Jun scientific services output growth 9.1%
--India Jun administrative services output growth 14.4%
--India Jun arts, entertainment services output growth 6.1%
NEW DELHI – India's services production reported healthy on-year growth in 18 sub-sectors in June, with output in the real estate sector service growing at the fastest pace of 24.7% on year, data released Monday by the statistics ministry showed. Among the 19 sub-sectors tracked under the Index of Services Production, eight services showed robust double-digit growth in output in June, the statistics ministry said.
"Top sub-sectors reporting strong growth in June 2026 were real estate (24.7%), retail trade (18.0%), and wholesale trade (15.1%)," the ministry said in a release. The Ministry of Statistics and Programme Implementation is releasing the trial Index of Services Production to measure short-term changes in the growth of India's formal services sector. The 19 sub-sectors listed by the ministry cover about 60% of the services sector. This index, with 2024-25 (Apr-Mar) as the base year, will serve as a counterpart to the Index of Industrial Production, which measures the economic growth of the industrial sector.
The trial Index of Services Production will be released for at least six months. After taking into account the feedback, the ministry will consider releasing the Index of Services Production in the next seven-eight months, statistics ministry Secretary Saurabh Garg had told Informist earlier.
Last month, the trial Index of Services Production for May showed a strong rise in 16 categories compared with the corresponding period a year ago. Of these 16, half of the services sub-sectors had recorded double-digit growth in May. The growth in May was mainly led by accommodation, real estate, and retail trade sub-sectors.
The output of administrative services rose 14.4% on year in June, and that of information technology and computer-related services grew 13.5%. Other sectors which reported double-digit growth include warehousing and support activities for transport as well as accommodation and food.
The output of accommodation and food services rose at a much slower pace of 10.2% in June as compared to 27.4% growth in May. Among financial services, the banking and insurance segments posted a growth of 11.4% and 9.6%, respectively.
On the other hand, the output of air transport services continued to be in negative territory. The sector reported a contraction of 6.0% in June against a contraction of 2.8% in May.
The experimental indices will track the goods and services tax, the Annual Survey of Incorporated Services Sector Enterprises, and other administrative data to map the formal services sector output. Some of the services excluded from the indices as of now are public administration and defence, financial services activities of the Reserve Bank of India, money market funds, activities of private households with employed persons, and gambling and betting activities. These services have been excluded from the scope of Index of Services Production due to lack of coverage under different data sources.
The following table details year-on-year changes in services sector output in June:
| SERVICES SECTORS | June 2026 | May 2026 |
| Wholesale Trade | 15.1% | 3.7% |
| Retail Trade | 18.0% | 13.3% |
| Repair Services | 7.5% | 9.8% |
| Accommodation and food | 10.2% | 27.4% |
| Railway Transport | 3.3% | 3.4% |
| Road Transport | 9.7% | 4.4% |
| Water Transport | 6.9% | 5.6% |
| Air Transport | (-)6.0% | (-)2.8% |
| Warehousing and support activities for transportation | 11.8% | 11.5% |
| Postal and Courier | 5.0% | (-)1.0% |
| Telecommunications | 9.5% | 11.8% |
| Information and Broadcasting | 4.6% | (-)7.6% |
| Banking | 11.4% | 12.1% |
| Insurance | 9.6% | 2.7% |
| Real Estate | 24.7% | 17.7% |
| IT and computer related services | 13.5% | 10.3% |
| Professional, scientific & technical services | 9.1% | 11.0% |
| Administrative and support services | 14.4% | 5.0% |
| Arts, Entertainment and Recreation Services | 6.1% | 1.6% |
Source: Ministry of Statistics and Programme Implementation
End
Reported by Shweta
Edited by Pankaj Aher
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