India’s services exports have shown robust performance in FY2025-26, reaching an estimated $348.4 billion from April to January 2025-26, driven by global demand. The services sector’s contribution to India’s GDP increased to 9.7% during FY23-FY25, up from 7.4% pre-pandemic, underscoring its growing significance in supporting economic growth.
In the first half of FY26, services exports’ share in GDP rose to 10%, indicating the sector’s continued expansion and resilience in driving India’s economic growth trajectory. The services industry has become a significant source of employment, constituting nearly 30% of total employment and creating around 40 million jobs in the past six years, post-COVID recovery.
India’s services exports have exhibited consistent growth, positioning themselves as a key driver of the country’s external sector performance. Foreign investment in India’s services sector, particularly in Global Capability Centres (GCCs), has bolstered the nation’s standing as a preferred hub for globally delivered services.
Investment inflows in the services sector, accounting for 80.2% of total FDI during FY23-FY25, have shown a notable increase, reflecting rising investor confidence. Notably, India’s expanding network of trade agreements has enhanced market access for its services across global markets, offering new avenues for Indian service providers.
