India’s Services Sector Grows 13.5% in July 2026

India’s services sector demonstrated robust, broad-based growth in July 2026, with 17 out of 19 tracked sectors expanding, according to official data from the Ministry of Statistics and Programme Implementation (MoSPI). Analysis from CareEdge Ratings showed services output expanding 13.5% year-on-year, slightly accelerating from 13.2% in June. Overall, 10 sectors registered double-digit growth. Within the trial Index of Services Production (ISP)—which covers approximately 60% of India's services ecosystem—administrative and support services led the expansion with a 20.9% jump, closely followed by retail trade at 18.5%, real estate at 14.4%, accommodation and food services at 12.6%, and banking services at 12.3%. While overall momentum remained strong, certain key sub-sectors experienced moderation or contraction during the month. Growth in real estate output cooled to 14.4% from 24.7% in June, while wholesale trade eased to 12.1% from 15.1%. Moderate single-to-double-digit growth was recorded across telecommunications (11%), IT services (10.7%), professional/R&D services (10.4%), and road transport (9.9%), alongside water (7.7%) and railway transport (7.5%). Conversely, air transport contracted 8.4% and repair services fell 5%. CareEdge Ratings expects the services sector to retain its fundamental resilience, even as external volatility, fluctuating energy costs, and supply-chain frictions pose potential risks.