Eight services segments log double-digit growth in May trial index

India’s services economy received a fresh, encouraging data point in May, with the second trial release of the **Index of Services Production (IoSP)** showing **broad-based growth across formal services**. According to the trial results reported by *Livemint*, **eight services segments recorded double-digit growth** during the month.

The release is significant not only for the strength indicated in several segments, but also because it adds a new, higher-frequency lens on services—an area that traditionally has fewer monthly indicators compared to manufacturing.

A new monthly gauge for India’s largest sector The IoSP trial release aims to provide a **monthly measure of output in services**, mirroring how industrial production is tracked for manufacturing. Services form the backbone of India’s economic activity, spanning trade, transport, finance, business services, hospitality, and a wide range of professional and public-facing offerings.

The second trial release, as reported, points to **continued momentum in formal services** and suggests that demand and activity are not limited to a narrow set of industries. For decision-makers, this kind of breadth can be as important as the headline growth itself, because broad participation often indicates healthier, more resilient expansion.

As a trial series, the IoSP is still in an evolving phase, but the early signals matter: a consistent monthly indicator can help track turning points faster, support better-informed policy calibration, and improve planning for businesses that depend on service-sector demand.

What “broad-based” growth means for businesses and jobs When multiple services segments expand at a strong pace—such as the **eight segments showing double-digit growth** in May—it can reflect a mix of supportive drivers: steady consumer spending on everyday services, ongoing business investment in professional and operational services, and stable demand for logistics, connectivity, and finance.

For entrepreneurs and established companies alike, a more robust services cycle can open up practical opportunities:

• **MSMEs and local service providers** may benefit from improving order books and more predictable demand.
• **Startups in enterprise and consumer services** can use such signals to time expansions, hiring, and market launches.
• **Investors and lenders** often look for evidence of diversified growth, since it can reduce concentration risk.

It is also a useful reminder that services growth can have **wide spillovers**—from employment generation in customer-facing roles to higher utilisation of digital platforms, payments, and urban infrastructure.

Why the trial index will be watched closely Even with positive early readings, users of the data will watch for stability and continuity as the trial series matures. Over time, regular monthly publication can help answer practical questions: Is growth accelerating or normalising? Is the upswing concentrated in a few segments, or continuing to spread? Are there seasonal patterns that businesses should plan around?

For policymakers, the index can complement other indicators and help sharpen the view of underlying economic conditions, particularly in a sector that is both large and diverse. For corporates, it offers another input into planning cycles—alongside company results, sectoral trends, and high-frequency consumption and mobility data.

**Why it matters:** A monthly services gauge that shows broad-based strength—such as eight segments posting double-digit growth in May—can improve visibility into India’s largest sector, supporting better business planning, investment decisions, and timely policy responses.