As many as 10 of the 19 services sub-sectors of the Indian economy recorded double-digit growth in July 2026 compared to the same month a year earlier, according to the Index of Services Production (ISP) — base year 2024-25 — released by the National Statistics Office (NSO) on Tuesday, 29 September 2026. The data points to a broad-based expansion across services, even as one segment continued to contract.

Top Performers in July

Administrative and support services emerged as the fastest-growing sub-sector, surging 20.9 per cent year-on-year in July, up sharply from 14.4 per cent in June. Retail trade posted strong growth of 18.5 per cent, while accommodation and food services expanded 12.6 per cent and banking grew 12.3 per cent. Real estate, which had led the pack in June at 24.7 per cent, moderated to 14.4 per cent in July.

Sectors Crossing Into Double Digits

Three sub-sectors crossed the double-digit threshold during July. Information and broadcasting grew 10 per cent, recovering from just 4.6 per cent in June. Telecommunications rose to 11 per cent from 9.5 per cent. IT and computer-related services clocked 10.7 per cent growth, and professional, scientific and technical services — including R&D — expanded 10.4 per cent, up from 9.1 per cent in the prior month. This broad acceleration across knowledge-intensive sub-sectors reflects sustained demand from both domestic and export-facing businesses.

Transport Segments: A Mixed Picture

Warehousing and support activities for transportation registered 9.8 per cent growth in July. Among transport modes, railway transport growth more than doubled to 7.5 per cent, postal and courier services quickened to 8.7 per cent, and water transport rose to 7.7 per cent — all outpacing their June readings. Notably, the road transport index stood at 132.1, reflecting the rapid expansion of national highways and expressways.

Air Transport Contracts for Fourth Straight Month

Air transport contracted for a fourth consecutive month, with the decline widening to 8.4 per cent from 6 per cent in June. According to the NSO data, the widening Middle East conflict and the continuing closure of Pakistan's airspace for Indian commercial airlines have adversely impacted international operations, squeezing capacity and revenue on key routes.

Index Levels and What They Signal

In absolute index terms, accommodation and food led at 144, followed by retail trade at 140 and administrative and support services at 134.5. These elevated readings suggest sustained consumption momentum in discretionary and contact-intensive services — a segment that lagged in the post-pandemic recovery. With 10 of 19 sub-sectors now in double-digit territory, the services sector's breadth of expansion offers a constructive signal for the broader economy as the second quarter of FY2026-27 unfolds.