Services Exports Powering India’s Next Growth Story, Cross $421 Billion in FY26

Key Highlights

• India’s services exports reached a record $421.3 billion in FY26.
• Exports have increased from $158 billion in FY15 to over $421 billion in 11 years.
• Services now account for nearly 50% of India’s total exports.
• Government targets 10% share in global services exports by 2047.
• IT services remain the largest contributor to export earnings.
• Financial, professional and consultancy services continue to expand globally.
• Focus sectors include AI, cloud computing, cybersecurity, medical tourism and AYUSH.
• India-UK FTA will open opportunities across 137 service subsectors.
• Upcoming agreements with New Zealand, Oman and the EU expected to further accelerate growth.
• Services sector contributes 53.6% of India’s GDP.

India’s services sector is rapidly emerging as one of the strongest pillars of economic growth, with exports crossing the historic $421.3 billion mark in FY 2025-26. Over the last decade, services exports have grown from $158 billion in FY 2014-15 to more than $421 billion, highlighting the sector’s increasing contribution to India’s global trade footprint. The pace of growth in services exports has consistently outperformed merchandise exports, significantly narrowing the gap between the two categories.

The services sector now accounts for nearly half of India’s total exports, compared to around one-third a decade ago. With continued momentum across information technology, financial services, consulting, digital services and professional services, industry experts believe services exports could potentially overtake merchandise exports within the next few years. The sector currently contributes 53.6% of India’s GDP, reinforcing its position as the backbone of the country’s economy.

To capitalize on this growth trajectory, the government has set an ambitious target of increasing India’s share in global services exports from the current 4.3% to 10% by 2047. Several initiatives are being planned to strengthen high-growth areas such as artificial intelligence, cloud computing, cybersecurity, digital services, medical tourism, AYUSH, Ayurveda and the broader care economy. Efforts are also focused on creating a skilled workforce capable of meeting rising international demand.

India’s upcoming and recently concluded Free Trade Agreements (FTAs) are expected to provide a significant boost to service exports. The India-UK FTA, expected to come into force in July, covers 137 service sectors, while agreements with New Zealand, Oman and the European Union are set to create new opportunities for Indian professionals and businesses across hundreds of service-related industries. These agreements are expected to improve market access, enhance mobility for skilled workers and strengthen India’s position as a global services hub.

Service Export Trend (US$ Billion)