India's first Services Production index shows retail trade up 30.8% y-o-y, food and accommodation lead at 37.2%
MOSPI's inaugural Index of Services Production reveals broad-based consumer-services momentum, with 14 of 19 sub-sectors posting double-digit growth in April 2026. Retail trade climbed 30.8% y-o-y, while accommodation and food services led all sectors at 37.2%, signaling strong demand for India's retail operators.
What happened
MoSPI · India's first Index of Services Production shows retail trade growing 30.8% y-o-y in April 2026, with accommodation and food leading at 37.2%, signaling
Key facts
- 19 sub-sectors
- 14 double-digit growth
- accommodation and food 37.2% y-o-y
- retail trade 30.8% y-o-y
- FY26 retail trade 30.5%
- services ~53% of GVA
- index covers 60% of services
What to watch
- Second monthly ISP print to establish trend vs. base-effect artifact
- Listed retail/QSR quarterly SSSG and margin commentary
- GST collections and UPI transaction volume trajectory
- Rural vs urban demand split and real-wage/inflation data
- MOSPI methodology notes on formalization capture within index
- Overweight discretionary and experiential names (QSR, hotels, travel, restaurant chains) over staples/value retail near-term
- Cross-check headline against listed retailer SSSG guidance and GST collection trends before sizing positions
- Model base-effect fade into FY27 estimates; avoid extrapolating 30% into forward multiples
- Screen for formalization beneficiaries in food & accommodation with operating leverage to volume