Accommodation and realty top services growth in May

New Delhi: India's services sector economy saw a broad-based expansion in May with 16 of 19 tracked sectors posting growth, and eight registering double-digit gains, the country's new Index of Service Production showed.

The ministry of statistics and programme implementation (MoSPI) launched the ISP earlier this month, with 2024-25 as the base year. The trial ISP showed that accommodation and food services, real estate, retail trade and banking emerged as the fastest-growing segments of India's service economy in May.

In April, 17 of the 19 sectors grew, with 14 registering double-digit growth.


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"While the statistics ministry has not yet released the headline ISP growth figure, our calculations based on the current framework suggest that services output grew by 9.8% in May, moderating from 20.8% in April," said Rajani Sinha, chief economist at CareEdge Ratings.


"The moderation in growth was due to lower growth in retail trade, road transport, IT, and admin & support services," she added.

Accommodation and food services led the expansion, growing 27.4% year-on-year in May, although the pace moderated from 37.2% in April, according to official data released by the statistics ministry on Wednesday.