Retail trade, banking lead as 10 services sub-sectors clock double digits in July

India’s services sector remained broadly resilient in July, with 17 of 19 sub-sectors recording growth and 10 posting double-digit expansion. Wholesale and retail trade, banking, real estate and IT were among the key contributors to the overall performance. 3 Min Read India’s services sector recorded broad-based growth in July 2026, with 17 of the 19 sub-sectors in the Index of Services Production (ISP) registering positive year-on-year growth, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI). As many as 10 of the 19 sub-sectors recorded double-digit growth during the month, pointing to continued momentum across several parts of the services economy.

Wholesale trade grew 12.1% year-on-year in July, while retail trade recorded stronger 18.5% growth. Banking activity increased 12.3%, while insurance grew 8.9% during the month. Real estate also remained firm, with output rising 14.4% year-on-year, while the IT sector recorded 10.7% growth.

The breadth of growth was notable, with only two of the 19 sub-sectors recording a contraction during the month. The July data also follows a strong June performance . Real estate recorded the highest growth among the 19 service sub-sectors in June, rising 24.7% from a year earlier, while 18 of the 19 sub-sectors registered positive growth.

Retail trade grew 18%, followed by wholesale trade at 15.1%, administrative and support services at 14.4% and IT and computer-related services at 13.5%. Eight sub-sectors recorded double-digit growth in June. Industrial activity also gains momentum The broad-based services performance comes against the backdrop of strengthening activity across other parts of the economy.

I ndia’s industrial output growth accelerated to 8% in August 2026 from 6.7% in July, marking one of its strongest growth rates in recent months, according to MoSPI data. Manufacturing, which carries the largest weight in the index, grew 9% year-on-year and has now recorded growth of 8% or more for three consecutive months. Electricity and gas supply was another major driver, with output rising 12.3%, while water supply, sewerage and waste management grew 6.3%.

Mining, however, remained a drag, contracting 5.6% year-on-year in August. Within manufacturing, 18 of the 23 industry groups recorded positive growth. Electrical equipment output rose 30.9%, while motor vehicles, trailers and semi-trailers grew 25.2%.

Other transport equipment recorded 25.3% growth. The use-based classification also pointed to broad-based momentum. Capital goods output grew 16.9%, intermediate goods rose 13.7% and consumer durables increased 11.1%.

The broader industrial picture was also supported by the core sector, although growth moderated slightly in August. The Index of Core Industries grew 4.8% year-on-year, compared with a revised 5% growth in July. Five of the eight core sectors expanded in August, led by cement and electricity.

Cement production rose 12.5%, while electricity output increased 11.6%. Iron ore production grew 5.5%, steel output rose 3.4% and refinery products increased 2.6%. This was partly offset by contractions in coal, crude oil, natural gas and fertiliser production.

Coal output fell 3.8%, crude oil declined 3.6%, natural gas contracted 4.9% and fertiliser production dropped 12.4%. Cumulative growth in the core sector during April-August 2026 stood at 4.3%, compared with 2.4% in the corresponding period a year earlier. The July growth figure was revised down to 5% from the earlier provisional estimate of 5.4%.

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Source: CNBC TV18