India's Services Exports (Economy)
India's Services Exports (Economy)
Why In News:
The Government informed Parliament that India's services exports rose to a record USD 421.3 billion in FY 2025-26, growing 8.71 percent over the previous year reinforced by Free Trade Agreements and export promotion efforts.
Source: PIB, 24 July 2026
Key findings
FY 2025-26 Services Exports: USD 421.32 billion, up from USD 387.55 billion in FY 2024-25.
Top Contributors: Telecommunication, computer and information services contributed USD 206.6 billion; business services contributed USD 124.2 billion.
Total Exports: India's combined goods and services exports touched an all time high of USD 863.11 billion in FY 2025-26, up 4.59 percent from USD 825.26 billion in FY 2024-25.
Government's Multi-Pronged Strategy
Sector and Market Specific Strategies: Focused export promotion plans for individual services sectors and target markets.
Free Trade Agreements (FTAs): Securing market access and national treatment for Indian service providers through cross border supply, commercial presence and temporary movement of professionals.
Services Export Promotion Council (SEPC): A body under the Department of Commerce that undertakes market development, trade facilitation, policy advocacy and buyer-seller engagements.
Key Facts for Prelims
Service Sector: Refers to the segment of the economy that delivers intangible services rather than producing physical goods.
Scope: It covers a wide range of activities, including finance, banking, insurance, real estate, telecommunications, healthcare, education, tourism, hospitality, information technology (IT), and business process outsourcing (BPO).
FDI Inflows: The services sector remains the largest recipient of foreign direct investment (FDI) inflows, accounting for an average of 80.2% of total FDI during FY23–FY25, up from 77.7% in the pre-pandemic period (FY16–FY20).
Services Share in the Economy: Services exports accounted for about 10 percent of India's GDP in the first half of FY 2025-26.
Related Reform: Tax holidays until 2047 for foreign companies providing cloud services from India based infrastructure were proposed in the Union Budget 2026-27 to boost the sector further.