India retail trade grew 13.3% in May as services momentum broadened

MOSPI’s trial services index found 16 of 19 formal services sub-sectors posting year-on-year growth in May. Retail trade rose 13.3%, while accommodation and food services grew 27.4% and warehousing and transport support services increased 11.5%.

— Source publishedWed, 29 Jul, 2026, 17:50 IST·First seen Wed, 29 Jul, 2026, 18:00 IST·Source Forbes India

What happened

MOSPI’s trial services index showed broad May momentum, with retail trade up 13.3% year-on-year and accommodation and food services up 27.4%. Warehousing and transport support rose 11.5%, indicating continued demand strength across consumer-facing services.

Key facts

  • 16 of 19 formal services sub-sectors recorded positive year-on-year growth in May
  • Retail trade grew 13.3% year-on-year in May
  • Accommodation and food services grew 27.4% year-on-year, versus 37.2% in the prior month
  • Real estate services grew 17.7%
  • Warehousing and transport support services grew 11.5%
  • Services account for about 53% of India's GVA and over 30% of employment
  • The 19 tracked sub-sectors represent 60% of overall services activity

Why this matters

Corporate development teams should prioritize retail-adjacent logistics, warehousing and food-service partnerships or acquisitions as synchronized services growth expands cross-sector demand pools.

What to watch

  • June and July retail-trade and services-index readings, particularly whether retail growth remains above low-double-digit levels.
  • GST collections, UPI transaction values and card-spending data for confirmation of consumption breadth.
  • Passenger traffic, hotel occupancy, restaurant reservations and mall footfall as leading indicators for experiential retail demand.
  • Food inflation, rural wage growth, monsoon progress and consumer-confidence readings for mass-market purchasing power.
  • Inventory-to-sales ratios, discounting intensity and same-store transaction growth at listed retailers.
  • Freight volumes and warehousing leasing/occupancy, which would validate demand from distribution and business activity rather than only consumer services.
  • Increase staffing, inventory availability and fulfillment capacity around weekends, holidays, transit hubs and mall locations where hospitality-led footfall is strongest.
  • Prioritize high-attach categories such as travel essentials, beauty, snacks, gifting, casual apparel and convenience formats rather than assuming equal strength across all general merchandise.
  • Use partnerships with hotels, restaurants, travel platforms and event venues to convert service-led traffic into retail demand.
  • Track same-store sales by urban tier and customer income cohort; keep value-tier assortment and promotions flexible if volume demand lags headline services growth.
  • Accelerate omnichannel fulfillment and localized assortment in high-growth tourism, business-travel and warehouse-linked corridors.

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