The first monthly Index of Services Production shows a sharp rise in many service areas, while air transport and railways moved in the opposite direction.
The Ministry of Statistics and Programme Implementation has started a new monthly measure called the Index of Services Production, and its first release gives a fresh look at how different service businesses are performing.
The broad message is simple, many service areas are growing strongly, especially hotels, restaurants, retail trade, and support services, while air transport and railways have not shown the same strength.
This new index matters because services make up a very large part of the economy, but until now there was no regular monthly tool to track them in a clear way.
The Index of Services Production is designed to work like the industrial output index, which already helps track manufacturing activity. In simple terms, it is meant to show whether the service side of business is moving up, slowing down, or facing pressure.
The first data set uses 2024-25 as the base year and covers 19 sub-sectors of the formal services economy. MoSPI says the current trial version covers about 60 per cent of the formal services sector, so it is not a full picture of everything, but it is still an important step forward. The data shows that 14 out of these 19 sectors registered double digit growth.
The ministry also plans to release the index every month, which should make it useful for tracking short-term changes more quickly than older survey-based updates.
One of the biggest highlights is accommodation and food services, which includes hotels and restaurants. This segment recorded the fastest growth, rising by 37.2 per cent in April 2026 compared with the same month last year. That is a strong sign that travel, eating out, and related activities are recovering well and are seeing healthy customer demand.
Retail trade also performed well, with growth of 30.8 per cent. Administrative and support services increased by 28.7 per cent, while real estate activities rose by 27.7 per cent.
These numbers suggest that several everyday business-linked services are moving together, which usually points to wider activity in offices, shops, housing services, and business support work.
At the same time, not every service area moved in the same direction. Air transport contracted by 13.9 per cent, and railway transport fell by 0.4 per cent.
In simple words, the movement of people and goods through these two channels was weaker during the month, even while many other services expanded. That contrast is important because it shows that growth in the services sector is not happening evenly across all parts.
The method behind the index is also important. MoSPI is building the measure using different sources such as administrative records, GST-linked data, and enterprise survey data for parts of the economy that are not covered by GST.
This approach is meant to make the index more practical and more regular, so it can become a useful signal for policymakers, businesses, and analysts who want to understand monthly changes in the service economy.
There is also a bigger message behind this release. A monthly services index can help answer everyday questions like: Are people spending more on travel and food? Are business support services expanding? Is transport moving smoothly or slowing down? For readers, that means this index is not just a technical number. It can slowly become a simple mirror of how work, spending, and business activity are changing around us.
In the coming months, the real value of this index will be in the pattern it shows over time. One month of strong growth is useful, but repeated monthly releases will tell us whether this is a broad and steady trend or just a short-term jump. For now, the first report sends a clear signal: many parts of the services economy are active and growing, even though transport is showing a mixed picture.
