India's services up 9.8% in May 2026, hotels, restaurants surge
India's services sector, specifically the covered 19 services amounting to 60% of total services output, grew 9.8% in May 2026, thanks to a big boost from hotels and restaurants, which jumped 27.4%.
Real estate (up 17.7%) and retail trade (up 13.3%) also did well, along with steady gains in telecom, banking, IT, and professional services.
While that's a bit slower than April's surge, it still shows the sector is buzzing.
India launches trial services production index
This growth comes as India launches its new trial Index of Services Production (ISP): think of it as the service world's answer to the Index of Industrial Production (IIP) for manufacturing.
The ISP uses real Goods and Services Tax (GST) data to track about 60% of formal services activity each month.
Economists say this will help everyone, from markets to policymakers, get a clearer read on how India's economy is really doing in real time.