The Index of Services Production (ISP) for June 2026 released by the National Statistics Office (NSO) showed real estate as the fastest-growing segment with a robust 24.7 per cent increase, accelerating from 17.7 per cent in May 2026. According to the latest data, 8 out of 19 service categories recorded double-digit growth during the month, with real estate leading a broad-based expansion across the services sector. The real estate ISP climbed to 119 in June, representing a sharp increase from the previous year, even as air transport remained the only sub-sector to record a contraction. As per the NSO, 18 of the 19 services sub-sectors tracked registered positive year-on-year growth, with real estate leading with 24.7% growth, followed by retail trade at 18.0% and wholesale trade at 15.1%. The ISP for retail trade stood at 138, wholesale trade at 122.8, information technology and computer-related services at 130.8, and administrative and support services at 121.7.
The Real Estate sector led the growth with a robust 24.7 per cent increase, followed by Retail Trade at 18.0 per cent and Wholesale Trade at 15.1 per cent. According to the latest NSO data, Banking activity increased 11.4%, while Warehousing and transport support grew 11.8%. Administrative and support services expanded 14.4%, and IT and computer-related services increased 13.5%. Several large sectors gained significant momentum in June compared to May. Wholesale trade quickened to 15.1 per cent from 3.7 per cent in May, and administrative and support services to 14.4 per cent from 5 per cent, while retail trade picked up to 18 per cent from 13.3 per cent. These sectors demonstrated the strongest performance among all service categories tracked in the index, with real estate emerging as the standout performer in the latest data. Insurance grew 9.6%, road transport expanded 9.7%, and telecommunications increased 9.5%, while professional, scientific and technical services expanded 9.1%. Accommodation and food services recorded 10.2% growth, rounding out the double-digit performers in the services sector.
While the services sector demonstrated strong overall performance, air transport contracted by 6 per cent year-on-year in June, marking the third consecutive month of decline and widening from 2.8 per cent in May. This contraction in air transport suggests that despite overall strength in the services sector, some transport segments still face operational pressures. As reported by the NSO, air transport remains the only sub-sector to record a contraction, indicating specific challenges in this transport segment that contrast with the robust growth across other services categories. Rail transport, information & broadcasting, and postal-courier services saw the slowest progress among the 18 growing sub-sectors. The ministry noted that air transport remains the only sub-sector to record a contraction, indicating specific challenges in this transport segment that contrast with the robust growth across other services categories. Water transport increased 6.9%, railway transport recorded growth of 3.3%, and arts, entertainment and recreation services rose 6.1%.
The Index of Services Production is being released for the third time on a trial basis for the month of June 2026. According to the ministry, the base year for the index is 2024-25. The maiden sub-sectors trial ISP for April 2026 was released on July 14, 2026, with monthly ISPs being published on an experimental basis. The publication of the trial series enables MoSPI to examine data quality, test its resilience, and receive feedback from stakeholders and users. As reported by MoSPI, the indices for railways, banking and insurance are based on provisional monthly data and would undergo revision on an annual basis. The June data is part of a monthly series that begins in June 2025, with sub-sector indices provided in the annexure to the release. The trial ISP, with 2024-25 as the base year, accounts for nearly 60 per cent of India's services output and is the country's first high-frequency measure of monthly activity in the sector, filling a long-standing gap alongside the Index of Industrial Production (IIP).
The ministry stated that Indices of Railways, Banking and Insurance subsectors are based on provisional monthly data and would undergo revision on an annual basis. As reported by MoSPI, the trial series publication is designed to enable the ministry to examine data quality, test its resilience, and receive feedback from stakeholders and users. This experimental approach allows for continuous improvement of the index methodology before full implementation, with the latest data showing strong performance across most service categories. The ministry emphasized that the monthly ISP series is being released on an experimental basis to assess data quality, test the resilience of the index and seek feedback from stakeholders. The sub-sectors that grew by more than 10 per cent in June included wholesale trade, retail trade, accommodation and food, warehousing and support activities for transportation, banking, real estate, IT and computer-related services, and administrative and support services.
