Hotels, restaurants lead services at 35%+ YoY growth in new MoSPI index

MoSPI's new Index of Services Production ranks hotels and restaurants as the fastest-growing segment at 35%+ YoY, against 20.8% overall April services growth. Signals robust consumer and hospitality demand for QSR and retail operators, even as railway (-0.4%) and air transport (-13.9%) lag.

— Source publishedTue, 14 Jul, 2026, 21:03 IST·First seen Tue, 14 Jul, 2026, 21:08 IST·Source Indian Express · Business

What happened

New MoSPI Index of Services Production shows hotels and restaurants as fastest-growing services segment at 35%+ YoY, signaling strong consumer/hospitality

Key facts

  • 35% YoY hotels/restaurants growth
  • 20.8% overall services growth April
  • 19 sub-sectors
  • 60% services coverage
  • railway -0.4% April
  • air transport -13.9% April

Why this matters

Robust hospitality momentum at 35%+ YoY creates a favorable window for M&A and site-expansion in QSR and restaurant formats while consumer demand remains elevated.

What to watch

  • Next MoSPI ISP print to confirm durability vs base effect
  • ADR and occupancy data from hotel chains
  • QSR same-store sales and average-order-value trends
  • Air/rail passenger recovery reversing the transport lag
  • Urban wage and discretionary-spend indicators
  • Overweight organized QSR and branded hospitality names with urban exposure
  • Track quarterly SSSG guidance from listed restaurant and hotel chains for confirmation
  • Pair-trade hospitality long vs transport-linked travel-retail short given air (-13.9%) drag
  • Screen mall-REIT and high-street landlords for footfall-linked rental upside