13 of 19 India Services Sub-Sectors Post Double-Digit Growth in August
India’s services economy strengthened in August, with 13 of the 19 sub-sectors covered by the Index of Services Production recording double-digit year-on-year growth, according to data released by the National Statistics Office.
The performance marked an improvement from July, when 10 sub-sectors achieved double-digit expansion.
Retail trade leads growth
Retail trade was the fastest-growing segment, expanding by 19.9% compared with August 2025. Real estate and repair services each grew by 17.6%.
Financial services also posted strong gains. Insurance expanded by 16.5%, while banking services grew by 14.9%, accelerating from 12.3% in July and reflecting increased economic activity.
Scientific and technical services, including research and development, rose by 14.2%. Information technology and computer-related services grew by 13.8%, up from 10.7% in the previous month.
Administrative and support services expanded by 13.1%. Although the segment remained in the double-digit growth range, it slowed from 20.9% in July, when it was the fastest-growing services category.
Communications and hospitality remain strong
Postal and courier services registered solid growth, while telecommunications expanded by 11.8% from a year earlier.
Accommodation and food services grew by 11.9%, easing from 12.6% in July. Warehousing and transportation support activities increased by 11.2%, compared with 9.8% in the previous month.
Air transport remains the weak spot
Most transport categories expanded during August. Road transport grew by 9.4%, supported by continued development in the highways segment, while water and railway transport also recorded year-on-year gains.
Air transport was the major exception, contracting by 9.6% compared with August 2025. This marked its fourth consecutive month of decline and was steeper than the 8.4% contraction reported in July.
International airline operations continued to face disruption from conflict in the Middle East and the closure of Pakistani airspace to Indian carriers.
Services production index levels
In index terms, accommodation and food services recorded the highest reading at 148.2. Retail trade followed at 122, while road transport services stood at 116.8 and repair services at 114.7.
Overall, the August figures showed broad-based momentum across India’s services sector, led by retail, real estate, repair, financial and technology-related activities. However, the continued contraction in aviation remained a notable drag on transport services.
