India’s services sector is becoming one of the biggest drivers of the economy. In FY 2025-26, India’s services exports reached a record $421.3 billion, showing strong growth over the years. In FY 2014-15, India exported services worth $158 billion. Since then, exports have more than doubled. Services exports have also been growing faster than goods exports, reducing the gap between the two.
Today, the services sector accounts for nearly half of India’s total exports, up from about one-third 10 years ago. Industries like information technology (IT), finance, consultancy, digital, and professional services are playing a pivotal role in this regard. Furthermore, the services sector is the largest segment of India’s economy and provides nearly 53.6% of the country’s GDP. With the thought of sustained growth, service exports could even surpass merchandise exports in the future.
The government has set a long-term goal of increasing India’s share in global services exports from 4.3% today to 10% by 2047. To achieve this, it is focusing on fast-growing sectors such as artificial intelligence (AI), cloud computing, cybersecurity, digital services, medical tourism, AYUSH Ayurveda, and healthcare-related services. Efforts are also being made to develop a skilled workforce to meet global demand.
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The international trade deals made by India will add another dimension to the export of services. Starting this July, a new trade deal between India and the UK will open up opportunities in 137 different service areas. Similarly, there are other FTA deals with New Zealand, Oman, and the European Union, which are likely to provide more business prospects to Indian firms.
