According to sectoral growth estimates by ICRA, what was the growth rate of the services sector in Q3 FY26?

The services sector was estimated to grow at 7.8% in Q3 FY26, according to ICRA’s projections. This represented a decline from the 9.2% growth recorded in Q2 FY26, indicating a slowdown in service sector expansion. The moderation in services growth was linked to lower government spending and reduced growth in services exportsduring the quarter. The services sector plays a major role in India’s economy as it contributes a significant share to GDP through activities such as information technology, finance, tourism, and business services.