Services Index – India’s New Trial Data Shows Strong Growth Across Major Service Segments
Services Index – India’s formal services sector posted encouraging growth in April 2026, with newly released trial data showing broad-based expansion across most monitored industries.
The Ministry of Statistics and Programme Implementation (MoSPI) on Tuesday introduced the first sub-sectoral Trial Index of Services Production (ISP), using 2024-25 as the base year. The initial data for April 2026 indicates that 14 of the 19 tracked service sub-sectors recorded double-digit year-on-year growth compared with April 2025. According to the ministry, almost every monitored category registered positive performance during the month, reflecting healthy momentum across a significant portion of the country’s formal services economy.
Strong gains recorded in key service industries
Among the best-performing segments, Accommodation and Food Services registered the highest annual growth at 37.2 percent. Retail Trade followed with an increase of 30.8 percent, while Administrative and Support Services expanded by 28.7 percent. Real Estate also reported notable growth, rising 27.7 percent over the corresponding month last year.
These 19 sub-sectors together account for nearly 60 percent of India’s services sector, making the trial index an important indicator of short-term economic activity within the organised services market.
Monthly index aims to improve economic measurement
MoSPI said the introduction of the sub-sectoral ISP marks the first time India will have a monthly indicator tracking movements in a large share of its formal services sector. The ministry noted that a comprehensive overall Index of Services Production will be introduced later after assessing the consistency of the trial series and expanding sectoral coverage.
The services sector contributes more than half of India’s overall economic output, making accurate and timely measurement an important part of monitoring the country’s economic performance. Officials described the new index as a significant step toward strengthening India’s statistical framework and improving the availability of high-frequency economic data.
Expert committee guided development of the index
The methodology behind the Index of Services Production was developed with support from the Technical Advisory Committee on ISP, which was formed in May 2025. The committee included representatives from government ministries, industry bodies and academic institutions. It provided guidance on the conceptual framework as well as the statistical methods used to compile the new monthly index.
According to the ministry, the trial series has been designed to ensure a reliable assessment of activity across different segments of the formal services sector.
Data sources focus on organised sector businesses
MoSPI clarified that the ISP currently measures only formal sector enterprises because it is primarily based on Goods and Services Tax (GST) records and other administrative databases. As a result, services linked mainly to government functions, non-market activities or the informal economy are not included in the present index.
Different sources are used depending on the industry. Administrative data supports estimates for sectors such as air transport, railway transport, freight water transport, banking and insurance. GST information is used to measure a wide range of industries, including wholesale and retail trade, accommodation and food services, road transport, telecommunications, information and broadcasting, real estate, information technology services, professional services, administrative support activities and arts and entertainment.
Trial publication to support further improvements
For price adjustments, the ministry uses different inflation measures depending on the sector. Wholesale Price Index (WPI) serves as the deflator for wholesale trade, while Consumer Price Index (CPI) variants or suitable proxy indices are applied across other service industries based on availability.
MoSPI said the monthly Index of Services Production is currently being released on an experimental basis. Publishing the trial series will allow the ministry to evaluate data quality, assess the robustness of the methodology and gather feedback from users and stakeholders before introducing a broader and more comprehensive official index.