India's Services Exports Hit 10% of GDP, Fueled by Global Demand & Trade Deals

India's services exports share in GDP averaged 9.7 per cent during FY23-FY25, marking a notable rise from 7.4 per cent in the pre-pandemic period, and highlighting the growing role of the services sector in supporting economic growth.

"This stabilising contribution strengthened further in the first half (H1) of FY26, with the share of services exports in GDP increasing to 10 per cent, highlighting the continued expansion and resilience of India's services-led growth trajectory," the factsheet revealed.

The services sector has also emerged as a major source of employment generation.

It accounts for nearly 30 per cent of total employment. Over the past six years, the sector added nearly 40 million jobs, in the post-COVID recovery period, highlighting its role as an important labour market shock absorber.

India's services exports have recorded strong and consistent growth in recent years, emerging as one of the most resilient drivers of the country's external sector performance.

Moreover, rising foreign investment in India's services sector support the rapid expansion of Global Capability Centres (GCCs) and deepening international trade partnerships, which have helped in strengthening India's position as a preferred destination for globally delivered services.

Services-sector FDI inflows accounted for an average 80.2 per cent of total FDI during FY23-FY25, up from 77.7 per cent in the pre-pandemic period, reflecting growing investor confidence in India's services export ecosystem.

Investment has remained concentrated in information and communication services (25.8 per cent) and professional services (23.8 per cent), reflecting India's strength in digital and knowledge-intensive activities.

Notably, India's expanding network of trade agreements has played an important role in strengthening market access for its services sector across global markets. These agreements provide greater mobility for professionals, and new opportunities for Indian service providers across a wide range of services.

"With talent, technology, and global partnerships converging, India's services sector stands poised to carry the nation's growth story onto the global stage," said the statement.

- IANS