Key Details
The May 2026 trial Index of Services Production (ISP) covers 19 service sub-sectors (Base Year: 2024–25) and is being published on an experimental basis to strengthen India's high-frequency services statistics.
Area | May 2026 Highlights |
|---|---|
Overall performance | 16 of 19 sub-sectors recorded positive year-on-year growth; 8 achieved double-digit growth. |
Fastest-growing sectors | Accommodation & Food Services (27.4%), Real Estate (17.7%), Retail Trade (13.3%), Banking (12.1%), Telecommunications (11.8%). |
Other strong performers | Warehousing & Support Activities (11.5%), Professional, Scientific & Technical Services (11.0%), IT & Computer Related Services (10.3%). |
Sectors recording contraction | Air Transport (-2.8%), Postal & Courier (-1.0%), Information & Broadcasting (-7.6%). |
Data status | Published as a trial series; Railways, Banking and Insurance indices are provisional and subject to annual revision. |
MoSPI's Trial Index Signals Broad-Based Growth in Services
The Ministry of Statistics and Programme Implementation's (MoSPI) trial Index of Services Production (ISP) for May 2026 shows that India's services sector recorded broad-based year-on-year expansion, with 16 of 19 monitored sub-sectors growing and eight registering double-digit growth. Hospitality led the expansion, followed by strong performance in real estate, retail trade, banking, telecommunications, professional services and information technology, pointing to continued momentum across consumer-facing, financial and knowledge-intensive services.
While most sectors expanded, Air Transport, Postal & Courier Services, and Information & Broadcastingrecorded year-on-year contraction, indicating that growth remains uneven across parts of the services economy.
The ISP Marks an Important Addition to India's Statistical System
Unlike existing economic indicators that primarily capture industrial activity, the Index of Services Production (ISP)is being developed as a high-frequency measure of services-sector output, covering 19 major service industries. Published as a trial series, the index is intended to test data quality, assess methodological robustness and incorporate stakeholder feedback before wider adoption as an official statistical product.
Once fully operational, the ISP could significantly strengthen India's economic statistics by providing policymakers, businesses and researchers with more timely evidence on trends across sectors that account for the largest share of India's economic activity.
What Is the Index of Services Production (ISP)?
The Index of Services Production (ISP) is a monthly indicator designed to measure changes in output across key services industries, similar to how the Index of Industrial Production (IIP) tracks manufacturing, mining and electricity. Published with 2024–25 as the base year, the current series is experimental and aims to establish a reliable framework for measuring India's services economy at high frequency.
Policy Relevance
A New High-Frequency Economic Indicator: The ISP complements the Index of Industrial Production by providing regular insights into India's services economy.
Better Economic Monitoring: Monthly sectoral data can help policymakers identify emerging strengths and weaknesses across trade, finance, transport, hospitality and digital services.
Improved Evidence for Macroeconomic Assessment: More timely services-sector data can strengthen economic forecasting and policy decisions.
Supporting Statistical Modernisation: The trial series reflects MoSPI's broader effort to improve the coverage, quality and timeliness of India's official statistics.
Tracking Structural Change: As services continue to account for a growing share of economic activity, the ISP can become an important tool for monitoring shifts within the economy.
Follow the Full Update Here: Release of Sub-Sectoral Trial Index of Services Production (ISP) for May 2026 (Base Year 2024–25)