Air Passenger Services Surge Over 30% as Railway Indices Record Modest Gains

The latest provisional Service Producer Price Index for the June quarter of FY27 shows an extraordinary jump in air passenger services. The index climbed 31.94 percent year‑on‑year, reaching 126.4 – the sharpest rise among all seven covered service categories.

Railway services posted a smaller but positive movement, with the overall railway index rising to 103.4, an increase of 1.27 percent. Within the railway sector, freight services edged up 0.10 percent to 103.3, while passenger services rose 3.50 percent to 103.5.

Other services reported milder changes: insurance services increased 0.98 percent to 102.9, telecom services grew 0.72 percent to 112.2, and banking services fell 3.35 percent to 100.9. The banking contribution index, however, surged to 134.8, up 6.90 percent.

All indices use 2022‑23 as the base year, but the government clarifies that they are unweighted and therefore do not capture the full breadth of the service sector. The next SPPI data for the July‑September quarter will be released on 25 November 2026.