India’s services economy maintained broad-based momentum in July 2026, with 17 of the 19 segments tracked under the government’s Index of Services Production (ISP) reporting year-on-year expansion. Data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Tuesday showed particularly strong growth across administrative services, retail, real estate, hospitality and banking.
The latest figures indicate that most services-related activities continued to expand compared with the same month last year. Ten of the 19 sub-sectors posted double-digit growth during July, showing the strength seen across several parts of the services economy.
Administrative and support services emerged as the fastest-growing segment in July, registering a 20.9 per cent increase over July 2025. Retail trade followed with growth of 18.5 per cent, while real estate services expanded 14.4 per cent year-on-year.
The accommodation and food services segment also recorded a double-digit increase of 12.6 per cent. Banking activity rose 12.3 per cent during the month.
Wholesale trade grew 12.1 per cent year-on-year. Telecommunications recorded an 11 per cent increase, while IT and computer-related services expanded 10.7 per cent.
Professional, scientific and technical services, which include research and development activities, grew 10.4 per cent. Information and broadcasting also crossed the double-digit mark, registering 10 per cent growth compared with July 2025.
Air Transport, Repair Services Contract
While most segments expanded, two of the 19 sectors recorded an annual decline.
Air transport activity dropped 8.4 per cent year-on-year in July, making it the weakest-performing segment in the latest data. Repair services also contracted, declining 5 per cent compared with July last year.
Arts, entertainment and recreation services saw only limited growth of 1.7 per cent during the month.
The performance of air transport was also weaker on a sequential basis. Its index fell to 87.8 in July from 91.2 in June, indicating a further decline from the previous month.
Retail, Wholesale Indices Rise From June
The monthly movement in the services indices showed gains in several sectors. The retail trade index increased to 140.0 in July from 138.0 in June.
Wholesale trade also recorded a month-on-month improvement, with its index climbing to 126.8 from 122.8. Administrative and support services saw a much sharper sequential increase, with the index rising to 134.5 in July from 121.7 in June.
IT and computer-related services, however, moved in the opposite direction on a monthly basis. Its index declined to 119.1 in July from 130.8 in June. Despite the sequential moderation, the segment remained significantly ahead of its level a year earlier, with year-on-year growth of 10.7 per cent.
