India’s services economy recorded widespread growth in August 2026, with retail trade leading the expansion at 19.9% compared with August last year. Of the 19 services segments tracked, 17 expanded and 13 reported growth of at least 10%. The figures showed that stronger activity extended across several businesses connected with everyday life, from shopping and repairs to banking and deliveries.
The findings came from the trial Index of Services Production, released by the Ministry of Statistics and Programme Implementation on October 29. The index measures monthly activity across selected services, using 2024–25 as its base year. It covers nearly 60% of India’s services output, providing a more regular picture of an important part of the economy.
Retail trade’s 19.9% growth made it the fastest-growing segment in August. Real estate and repair services followed, both expanding by 17.6%. Repair services recorded a particularly strong turnaround after shrinking by 5% in July. These figures placed shopping, property-related activity and repair work among the main areas supporting the month’s services expansion.
Financial services also performed strongly. Insurance grew by 16.5%, while banking expanded by 14.9%. Professional, scientific and technical services, including research and development, increased by 14.2%.
Information technology and computer-related services grew by 13.8%, while administrative and support services recorded a 13.1% rise. Together, these results showed that growth was not limited to shops or consumer-facing businesses.
Other services also contributed. Accommodation and food services expanded by 11.9%, telecommunications grew by 11.8%, and wholesale trade increased by 10.2%. In simple terms, businesses involved in stays, meals, communication and the supply of goods all recorded more activity than a year earlier. However, the figures measure changes in service production, rather than directly reporting household income or job creation.
Transport and delivery services presented a mixed picture. Postal and courier services grew by 13.2%, while warehousing and transport-support services expanded by 11.2%. Water transport increased by 9.5% and road transport by 9.4%. Railway transport grew more slowly, at 3.7%. The differences showed that improvement across the movement of goods and passengers was uneven.
Two segments moved in the opposite direction. Air transport contracted by 9.6%, while arts, entertainment and recreation declined by 4.7%. Air transport recorded its fifth consecutive month of contraction. Meanwhile, information and broadcasting grew by 7.2%, remaining outside the double-digit growth group. The results therefore pointed to broad expansion, but not a recovery shared equally by every service business.
EY India chief policy advisor D K Srivastava put overall ISP growth at 14% in August, compared with 13.5% in July. He noted that growth averaged 13.6% during June–August and suggested that this momentum could support healthy economic growth in the July–September quarter. This was an assessment of the trend, rather than a confirmed GDP result.
The numbers also require some caution. The ministry publishes the services index on an experimental basis to test data quality and gather feedback. Railway, banking and insurance figures use provisional monthly information and remain subject to annual revision. August’s results offer an encouraging view of services activity, but the trial data should not be treated as a complete or final measure of the economy.
