Govt launches index of services production; 14 of 19 sectors post double-digit growth in April

India on Tuesday released the first set of trial sub-sectoral Index of Services Production (ISP), with 14 of the 19 tracked services segments recording double-digit growth in April 2026.

The trial ISP covers 19 sub-sectors accounting for about 60% of the services sector.

The Ministry of Statistics & Programme Implementation (MoSPI) said an overall services production index would be introduced later after assessing the stability of the sub-sectoral indices and improving sectoral coverage.

"The ISP (Index of Services Production) represents an important milestone in strengthening India's statistical system and improving the measurement of the services sector, which accounts for more than half of the country's economic activity," the ministry said in a statement.

According to the data, accommodation and food services recorded the highest year-on-year growth of 37.2% in April 2026, followed by retail trade at 30.8%, administrative and support services at 28.7%, and real estate at 27.7%.

Telecommunications grew 22.8%, repair services 19.2%, road transport 18.5% and warehousing and support activities for transportation 18.2%.

Wholesale trade expanded 15.3%, insurance 15.6%, IT and computer-related services 15.2%, banking 12.2%, and professional, scientific and technical services 16.5%.

Water transport rose 5.7%, postal and courier services 3.3%, and information and broadcasting 2.5%.

Railway transport declined marginally by 0.4%, while air transport contracted 13.9% during the month.

The ministry said nearly all categories registered positive growth in April compared to the same month last year.

The ISP has been developed with guidance from the Technical Advisory Committee on Index of Services Production, constituted in May 2025, comprising representatives from academia, industry associations and government ministries.

The indices are compiled using a combination of Goods and Services Tax (GST) data, administrative data and the Annual Survey of Incorporated Services Sector Enterprises (ASISSE).

Administrative data are used for sectors such as air transport, railway transport, water transport, banking and insurance, while GST data are used for most other service activities including trade, hospitality, transport, telecommunications, real estate, IT services and professional services.

The ministry said the index currently covers only the formal services sector and excludes core government activities, non-market services and activities dominated by the informal sector.

Subsequent ISPs will be released on the 29th of every month.