MoSPI debuts trial Services Production Index; retail trade jumps 30.8% YoY in April

The government's new high-frequency Index of Services Production covers 19 sub-sectors spanning ~60% of the services economy. April data show retail trade up 30.8% and accommodation & food services up 37.2% year-on-year, with 14 of 19 sub-sectors posting double-digit growth despite West Asia conflict; air transport lagged at -13.9%.

— Source publishedTue, 14 Jul, 2026, 20:32 IST·First seen Tue, 14 Jul, 2026, 20:37 IST·Source BL · Consumer & Economy

What happened

MoSPI · Government launched trial Index of Services Production covering retail trade, accommodation and food services. April data showed retail trade grew 30.8%

Key facts

  • 19 sub-sectors
  • 60% of services sector
  • retail trade +30.8%
  • accommodation and food services +37.2%
  • air transport -13.9%
  • 14 of 19 sub-sectors double-digit growth

Why this matters

A credible new government dataset covering ~60% of the services economy validates the retail and food-services growth thesis, strengthening the case for expansion and consolidation plays in these categories.

What to watch

  • May-June SPI revisions and whether double-digit breadth (14/19) holds
  • Air transport index trajectory as leading travel/hospitality demand proxy
  • CPI/fuel inflation prints and RBI rate guidance
  • Monsoon progress and rural demand read-through
  • West Asia conflict escalation and Brent crude levels
  • Cross-check SPI retail signal against internal footfall and same-store-sales trends by category
  • Reweight discretionary and QSR/hospitality exposure upward on demand confirmation
  • Model base-effect adjusted run-rate to separate real momentum from comps
  • Stress-test supply chain for fuel/logistics cost pass-through from West Asia risk