Retail Trade Surges 19.9% to Lead India's Services Growth in August
MoSPI data shows retail trade surged by 19.9% in August 2026, while air transport and entertainment sectors saw a decline.
India's services sector witnessed a diverse performance in August 2026, with retail trade growth August figures emerging as the standout performer. According to the latest data released by the Ministry of Statistics and Programme Implementation (MoSPI), the retail trade subsector recorded a massive year-on-year growth of 19.9 per cent, leading the charge among various services industries.
The Top Performers: Retail, Real Estate, and Insurance
The growth momentum was not limited to retail alone. Several other subsectors showed strong upward trajectories during the month. Following closely behind retail trade, both real estate and repair services posted an impressive growth rate of 17.6 per cent each.
The financial and professional services sectors also contributed significantly to the positive trend:
- Insurance: Expanded by 16.5 per cent.
- Banking Services: Registered a growth of 14.9 per cent.
- IT and Computer-related Services: Grew by 13.8 per cent.
The Downturn: Air Transport and Entertainment
While the majority of the services sector flourished, two specific areas faced a downturn. Out of the 19 subsectors tracked by MoSPI, only air transport and the arts, entertainment, and recreation services recorded contractions.
Air transport saw a significant dip, declining by 9.6 per cent on a year-on-year basis. Similarly, the arts, entertainment, and recreation sector shrunk by 4.7 per cent, marking a stark contrast to the booming retail and financial segments.
Understanding the MoSPI Trial Index
These insights come from the Sub-Sectoral Trial Index of Services Production (ISP) for August 2026. This index is currently being released as a trial series designed to provide a granular look at changes in services production across different segments of the Indian economy.
Key Details of the Index:
- Base Year: The ministry is using 2024-25 as the base year for this trial index to ensure accurate comparisons over time.
- Scope: It tracks monthly output changes across 19 sub-sectors, including telecommunications, trade, transport, financial services, and information technology.
- Purpose: Unlike broad economic indicators, the ISP focuses specifically on the output changes within individual sub-sectors.
The data represents a direct comparison of the growth in ISPs for August 2026 against the figures from August 2025, revealing a positive growth trend in 18 out of the 19 monitored sub-sectors.