India's services sector posted strong growth across most categories in July, primarily driven by administrative services, retail trade, real estate, accomodation and food services, according to monthly Index of Services Production (ISP) data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Tuesday, September 29.
The data revealed that 17 of the 19 services sub-sectors recorded double-digit output growth in the month July. Administrative and support services emerged as the top performer with output rising 20.9% year-on-year, followed by retail trade at 18.5% and real estate services at 14.4%, accommodation and food at 12.6%, while banking grew 12.3%.
In July, The governemnt launched ISP, a new macroeconomic indicator with the base year of 2024-25, with the aim to provide a monthly measure of activity in India's formal services sector. This indicator highlights a significant milestone in strengthening India's statistical framework by offering high-frequency data on a sector that contributes more than half of the country's economic output, according to MoSPI.
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The ministry said the monthly indices currently cover 19 services sub-sectors, representing about 60% of the formal services economy. It further added that ISP data will be released on the 29th of every month, giving policymakers, businesses and investors with an indication of trends in the country's services sector.
Last month, real estate sector emerged as the fastest-growing segment of the services economy, with output growing 24.7% year-on-year, while air transport remained the only sub-sector to record a contraction, according to ISP data released by MoSPI on August 29.
Retail trade was the second-fastest growing segment, with its index rising 18% year-on-year to 138, while wholesale trade expanded 15.1% to 122.8.
Administrative and support services jumped14.4%, while IT and computer-related services increased 13.5%, indicating a sustained activity across property, consumption and technology-linked businesses.
Eight of the 19 services sub-sectors recorded double-digit growth in June, while 18 registered positive year-on-year growth.
It must be noted that the indices for railways, banking and insurance are based on provisional monthly data and are subject to annual revisions.
Banking activity also expanded, with the sector's index rising 11.4% to 121.3. Warehousing and transportation support services grew 11.8%, while accommodation and food services posted 10.2% growth.
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