India Services Sector Expands Strongly In July As 17 Of 19 Segments Record Growth: New Index Data

India’s services sector witnessed strong growth in July 2026, with most segments tracked under the government’s new Index of Services Production reporting expansion compared with the previous year.

The trial index released on September 29 showed that 17 of the 19 services categories recorded positive growth in July, while 10 segments registered double-digit expansion.

Administrative services, retail and real estate lead growth

Administrative and support services emerged as the fastest-growing segment, expanding 20.9% compared with July 2025. Retail trade followed with an 18.5% increase, while real estate activities grew 14.4%.

Several other service categories also recorded robust expansion. Accommodation and food services rose 12.6%, banking services increased 12.3% and wholesale trade grew 12.1%.

Telecommunication services expanded 11%, while IT and computer-related services recorded 10.7% growth. Professional, scientific and technical services, including research and development activities, increased 10.4%. Information and broadcasting services also registered 10% growth.

Transportation-related services showed steady improvement, although the pace varied across different segments.

Road transport grew 9.9%, warehousing and transport support activities increased 9.8%, postal and courier services expanded 8.7%, water transport rose 7.7% and railway transport recorded 7.5% growth.

Air transport and repair services register decline

Despite overall momentum in the sector, two categories recorded contraction during the month. The air transport index declined 8.4% year-on-year, while repair services fell 5%.

The air transport index stood at 87.8 in July, lower than 95.9 recorded in the same month last year and 91.2 in June 2026. The index has declined from 117.3 in January, according to monthly trial-series data.

Repair services recorded an index value of 126.3 in July compared with 133 in July 2025. However, the segment improved from 120.1 in June.

Among the better-performing categories, retail trade recorded a significant increase in its index, rising to 140 in July from 118.2 a year earlier. Administrative and support services climbed to 134.5 from 111.3, while real estate activity increased to 121.2 from 106.

The data indicate that India’s services economy continued to expand across multiple segments, supported by strong activity in consumer-facing, technology and business-related services.