India Services Sector Expands Strongly In July As 17 Of 19 Segments Record Growth: New Index Data

India's services sector experienced robust expansion in July 2026, with most of the 19 tracked segments demonstrating growth compared to the previous year, according to a newly released Index of Services Production. Of the 19 categories monitored, 17 recorded positive growth in July 2026, while 10 segments showed double-digit expansion.

Administrative services led the growth, expanding by 20.9%, followed by retail trade at 18.5% and real estate activities at 14.4%. Several other service categories also experienced significant growth, including accommodation and food services (12.6%), banking services (12.3%), and wholesale trade (12.1%). Telecommunication services expanded by 11%, while IT and computer-related services grew by 10.7%.

Professional, scientific, and technical services, including research and development activities, increased by 10.4%, and information and broadcasting services grew by 10%. Transportation-related services showed steady improvement, with road transport up by 9.9%, warehousing and transport support activities increasing by 9.8%, postal and courier services expanding by 8.7%, water transport rising by 7.7%, and railway transport recording 7.5% growth.

However, two categories recorded contraction during the month. Air transport declined by 8.4%, and repair services fell by 5%. Despite these declines, the air transport index stood at 87.8 in July 2026, lower than the 95.9 in July 2025 and 91.2 in June 2026. The index has declined from 117.3 in January 2026. Repair services recorded an index value of 126.3 in July 2026 compared to 133 in July 2025, improving from 120.1 in June 2026.

The data indicate that India's services economy continued to expand across multiple segments, driven by strong activity in consumer-facing, technology, and business-related services.