India's services economy stays resilient as 17 sectors post growth

India's services sector recorded broad-based growth in August, with 17 of the 19 tracked sectors expanding and 13 registering double-digit gains, according to data released by the statistics and programme implementation ministry on Thursday.

The trial Index of Service Production (ISP) showed that retail trade, realty, repair services, insurance and banking were among the fastest-growing segments of the service economy in August.

According to estimates by CareEdge Ratings, services output increased 14% year-on-year in August from 13.5% in July. The ministry has not released the headline ISP growth figure.

"The encouraging performance is consistent with the resilience and strong momentum visible in the broader economy, as reflected in indicators such as bank credit growth, GST collection, automobile sales and e-way bills," said Rajani Sinha, chief economist at CareEdge Ratings.

Industrial activity also remained robust, with growth in the Index of Industrial Production (IIP) standing at 7.3% in the second quarter of this financial year.

Retail trade led services sector growth in August, expanding 19.9% year-on-year compared with 18.5% in July. Repair services and real estate followed, both recording 17.6% growth.

Insurance output increased 16.5% year-on-year, while banking grew 14.9%. Professional, scientific and technical services, including research and development, expanded 14.2%, followed by IT and computer-related services (13.8%) and administrative and support services (13.1%).