New Index of Services Production shows 17 of 19 services sub-sectors growing in July, led by administrative services at 20.9%

Key facts

• India's services economy grew broadly in July, with 17 of the 19 sub-sectors tracked by the new Index of Services Production (ISP) expanding year-on-year and 10 recording double-digit growth.
• The Ministry of Statistics and Programme Implementation (MoSPI) released the July ISP data on Tuesday, showing administrative and support services leading growth at 20.9%, followed by retail trade at 18.5%, real estate at 14.4%, accommodation and food services at 12.6% and banking at 12.3%.
• The ISP is being released on a trial basis and is designed to complement the Index of Industrial Production (IIP), which tracks industrial output.
• The trial ISP series uses 2024-25 as the base year and covers 19 formal services sub-sectors, including trade, transport, telecommunications, banking, insurance, real estate, IT and professional services.
• Wholesale trade grew 12.1% year-on-year in July.
• Banking expanded 12.3% and IT and computer-related services rose 10.7%, while professional, scientific and technical services, including research and development, grew 10.4%.
• Telecommunications rose 11% and information and broadcasting grew 10% in July.
• Among transport-related activities, road transport grew 9.9%, warehousing and support activities for transportation rose 9.8%, water transport increased 7.7% and railways grew 7.5%.
• Repair services contracted 5% year-on-year in July and air transport declined 8.4%, while arts, entertainment and recreation services recorded a modest 1.7% increase.
• The ISP is a monthly indicator designed to measure changes in the real volume of output produced by the services sector relative to a base period.
• Services have contributed more than 50% of gross value added since 2013-14, but India historically lacked a comparable monthly measure of services output.
• The indices for railways, banking and insurance are based on provisional monthly data and will be revised annually.