14 of the 19 sub-sectors in the trial and inaugural release of the government’s new Index of Services Production (ISP) witnessed double-digit growth in April 2026, with the best-performing sectors including accommodation and food, retail trade, administrative and support services, and real estate. 

The 19 sub-sectors measured account for about 60% of India’s services sector.

The ISP is meant to be the services sector counterpart to the Index of Industrial Production (IIP). While the IIP is released on the 28th of every month unless it is a weekend or holiday, the ISP will be released on the 29th henceforth. 

“The ISP represents an important milestone in strengthening India’s statistical system and improving the measurement of the services sector, which accounts for more than half of the country’s economic activity,” the Ministry of Statistics and Programme Implementation said in a release. 

“The release of sub-sectoral ISPs will provide, for the first time, a monthly measure of short-term movements in India’s formal services sector, with a coverage of about 60%,” it added.

While the inaugural release does not provide a composite growth rate for the entire index, this growth rate can be calculated using the sector-wise growth rates and weightages, DK Srivastava, chief policy advisor at EY India, said.

“Considering the year-on-year growth in April 2026 over that in April 2025, the 19-services sector growth is at 20.8%,” Mr. Srivastava said.

The top sub-sectors that reported strong growth in April 2026 were accommodation and food (37.2%), retail trade (30.8%), administrative & support services (28.7%), and real estate (27.7%). 

The base year of the trial ISPs has been set as 2024-25, and the index sources its data from several areas, including administrative data, Goods and Services Tax data, and the Annual Survey of Incorporated Services Sector Enterprises (ASISSE) data.

“The production of ISP by the MoSPI is a welcome development, providing high-frequency information regarding the most vibrant sector of the economy, namely the services sector, with adequate details about 19 sub-service sectors,” Mr. Srivastava said. 

“While the coverage is so far about 60% of the total services sector, it is expected that the coverage will progressively increase,” he added.

India’s services sector growth accelerated to a 15-year high in August on robust demand, which also pushed prices higher at the fastest rate in over a decade, a business survey showed on Wednesday (September 3, 2025).

That comes after official data showed the sector grew at a much-higher-than-expected 7.8% rate last quarter. But the Trump administration’s steep 50% tariff on U.S. imports of Indian goods threatens to dampen growth in the coming quarters.

HSBC’s India Services Purchasing Managers’ Index (PMI) , compiled by S&P Global, jumped to 62.9 last month from 60.5 in July, but was much lower than a preliminary reading of 65.6.

Readings above 50.0 indicate growth on a monthly basis, while those below that level point to a contraction.

“India’s services PMI Business Activity Index reached a fifteen-year high last month … on the back of surging new orders,” said Pranjul Bhandari, chief India economist at HSBC.

New business — a key gauge for demand — expanded at the sharpest pace since June 2010. That was supported by strengthening international demand with export orders recording their strongest rise in 14 months.

Robust demand allowed companies to pass on rising costs to customers more aggressively. Output price inflation increased to its highest level since July 2012, while input costs rose at the fastest rate in nine months.

Intensifying price pressures could mean overall inflation, which declined to an eight-year low of 1.55% in July, has reached its trough and may start spiking soon.

Business confidence for the year ahead improved to a three-month high with firms citing planned advertising spending and favourable demand forecasts. However, employment growth remained relatively modest.

The Composite PMI, which combines services and manufacturing sectors, rose to a 17-year high of 63.2 in August from 61.1 in July, indicating broad-based economic momentum across both segments of the economy.