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

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The Economic Times daily newspaper is available online now. Read Today's Paper India's services economy stays resilient as 17 sectors post growthET BureauLast Updated: Oct 30, 2026, 08:39:00 AM ISTSynopsis

India's services sector recorded widespread growth in August, with 17 of the 19 tracked segments expanding and 13 registering double-digit gains, according to the trial Index of Service Production (ISP). Retail trade led the expansion with 19.9% year-on-year growth, followed by repair services and real estate at 17.6% each. Banking, insurance and IT services also reported strong growth, while CareEdge Ratings estimated overall services output rose 14%.

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.

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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%).
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Read More News onIndia's services sector growthIndex of Service ProductionISP August 2026retail trade growth IndiaIndia's service economyreal estate sector growthbanking sector growth Indiainsurance sector growthIT services growth IndiaCareEdge Ratings services output
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