The government on Monday said that India’s services exports continue to record strong growth, reaching over 348 billion US dollars between April and January of the current financial year (FY26).
According to official data, the services sector accounted for around 10 percent of the country’s Gross Domestic Product (GDP) during the first half of FY26, highlighting its increasing importance in driving India’s economic growth.
Budget 2026–27 Proposes Measures to Boost Services Sector
Highlighting initiatives under the Union Budget 2026–27, the government said several policy measures have been introduced to further strengthen the services sector and improve India’s competitiveness in global markets.
Key measures include:
- Tax holidays until 2047 for foreign companies offering cloud services using infrastructure located in India
- Reforms in the Safe Harbour regime for IT services
- Improvements in Advance Pricing Agreements (APAs) to simplify tax compliance and reduce disputes
These reforms aim to encourage global technology companies to expand their operations in India while supporting domestic service providers.
Software Services Lead India’s Export Growth
The government noted that software services remain the largest component of India’s services exports, contributing over 40 percent of the total exports in the sector.
In addition, business and consulting services have emerged as key growth drivers in recent years, reflecting India’s expanding role in global professional and technology services.
Global Capability Centres and AI to Drive Future Growth
Officials said that the expansion of Global Capability Centres (GCCs) in India, the rapid development of artificial intelligence capabilities, and improved global market access through trade agreements are expected to further accelerate the country’s services exports.
The government has set an ambitious goal to make India a global leader in services trade with a 10 percent share in the global market by 2047.
This strategy is expected to boost economic growth, create employment opportunities, and strengthen India’s integration with the global economy.
