India's services sector gains momentum with broad-based growth in June

India's services sector demonstrated widening growth momentum in June, with 18 of 19 tracked sub-sectors posting expansion, signalling strengthening economic activity across the tertiary segment. Real estate emerged as the primary growth driver, delivering a commanding 24.7 per cent increase that propelled overall services momentum.

The pervasive expansion across services sub-sectors reflects sustained domestic demand and improving business conditions. Financial services, hospitality, information technology, and professional services all contributed to the sector's forward trajectory, underscoring diverse growth drivers beyond any single industry vertical.

Air transport operations remained the sole laggard, continuing its contraction trajectory as the sector grapples with persistent headwinds. The weakness in aviation services highlights uneven recovery patterns across the economy, even as ground-based and digital-centric services gather strength.

The June performance builds on recent momentum in India's services economy, which forms the backbone of gross domestic product growth. Analysts view the broad expansion as an encouraging sign of economic resilience, though the sustained contraction in air transport suggests certain sectors continue navigating post-pandemic challenges. The real estate surge in particular points to renewed confidence in property investments and commercial activity across urban centres.