Indian Services Sector Shows Strong Growth in July 2026

New Delhi, September 29 (Daily Kiran) : The Indian economy’s services sector demonstrated significant strength in July 2026. According to the Index of Services Production (ISP) released by the National Statistical Office (NSO), ten out of the 19 sub-sectors recorded double-digit growth. This trend indicates that economic activity is expanding across multiple areas, rather than being confined to just a few sectors.

Administrative and support services emerged as the fastest-growing segment, achieving a remarkable 20.9% growth, up from 14.4% in June. The real estate sector, which topped the charts in June, maintained its momentum with a growth rate that, while still strong, fell to 14.4% from 24.7%.

Retail trade saw an increase of 18.5%, while accommodation and food services grew by 12.6%. The banking sector also reported a 12.3% rise during the same period.

Additionally, three more sectors joined the double-digit growth club in July. The information and broadcasting sector’s growth rate surged from 4.6% in June to 10%. Meanwhile, the telecommunications sector improved from 9.5% to 11%. IT and computer services recorded a growth of 10.7%, and professional, scientific, and technical services—including research and development—saw a rise to 10.4%, up from 9.1% in June.

Positive trends were also observed in logistics and transportation sectors, with warehousing and transport support services growing by 9.8%. Rail, water, and postal transport activities experienced notable increases. Rail transport’s growth rate more than doubled to 7.5%, while postal and courier services saw an 8.7% increase, and water transport rose by 7.7%.

However, the air transport sector remained under pressure for the fourth consecutive month. Rising tensions in the Middle East and the closure of Pakistani airspace for Indian airlines impacted international operations, leading to an 8.4% decline in July, following a 6% drop in June.

In terms of indexes, accommodation and food services topped the list with an index of 144, followed by retail trade at 140 and administrative and support services at 134.5. The road transport index stood at 132.1, indicating a rapid expansion of the national highways and expressway network, which is continuously boosting freight and passenger transport activities.