Services growth slows to 9.5%, but 'accommodation and food' soars 27.4%: India ISP data

Why in news

MoSPI released experimental Index of Services Production (ISP) data showing a significant slowdown in services sector growth to 9.5% in May 2026.

Background

The services sector grew at 9.5% in May 2026, down from 20.5% in April. The 'accommodation and food' category saw a massive 27.4% increase, while the overall industry growth stood at 5%.

Facts for Prelims

• FactServices sector growth slowed to 9.5% in May 2026 from 20.5% in April.
• FactThe 'accommodation and food' category grew by 27.4%.
• BodyMoSPI (Ministry of Statistics and Programme Implementation) is the body responsible for releasing ISP data.
• FactISP data currently excludes health, education, and informal sectors.

For Mains

Q. Analyze the significance of the services sector in India's economic growth and discuss the challenges in capturing the informal economy in national statistics.

Dimensions to cover in your answer

• contribution to GDP
• informal sector exclusion
• sectoral volatility
• data reliability

Keywords: growth indicators · informal economy · sectoral analysis · statistical methodology

More Economy notes

• RBI Governor Malhotra Says Premature to Confirm UPI Transaction Charges · 5 August 2026
• Stock indices swing wildly as India launches new auction system · 5 August 2026
• RBI keeps repo rate unchanged at 5.25%, Sensex up 400 points · 5 August 2026
• Kudumbashree Organises Over 2,000 Onam Fairs to Boost Local Products, Aim for Higher Turnover · 5 August 2026
• Nabard rejected its ₹8,000-crore bond offering as investors demanded higher yields · 5 August 2026
• The Government of India launched an Offer for Sale (OFS) of LIC shares to meet minimum public shareholding requirements and boost the disinvestment kitty · 5 August 2026

All Economy current affairs →