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.