India’s Services Exports Reach $348.4 Billion in April to January FY26, Strengthening Role in Economic Growth
Services Exports Maintain Strong Momentum in FY26
India’s services exports continued to demonstrate strong momentum in FY2025-26, supported by steady global demand for Indian services. According to an official factsheet released on Saturday, the country’s services exports are estimated at $348.4 billion during the April to January period of FY26.The data highlights the growing significance of the services sector in India’s economic expansion and its increasing contribution to the country’s external sector performance.
Services Share in GDP Continues to Rise
The services sector has significantly increased its contribution to the economy in recent years. Services exports accounted for an average of 9.7 percent of India’s GDP during FY23 to FY25, compared with 7.4 percent in the pre pandemic period.The upward trend continued in the current financial year as well. According to the factsheet, services exports accounted for 10 percent of GDP in the first half of FY26, reflecting sustained expansion and resilience in the services led growth trajectory.
Major Source of Employment Generation
The services sector has also emerged as a major contributor to employment in India. It currently accounts for nearly 30 percent of total employment in the country.During the post COVID recovery period, the sector added around 40 million jobs over the past six years, underlining its role in absorbing labour market shocks and supporting job creation.
Rising Investment Strengthens Services Ecosystem
Foreign investment in India’s services sector has played a key role in supporting its growth. Increasing investments have contributed to the rapid expansion of Global Capability Centres (GCCs) and have strengthened international trade partnerships.These developments have reinforced India’s position as a preferred destination for globally delivered services.
Services Sector Dominates FDI Inflows
According to the factsheet, services related sectors accounted for an average of 80.2 percent of total FDI inflows during FY23 to FY25, up from 77.7 percent in the pre pandemic period.Investment has been largely concentrated in information and communication services, which accounted for 25.8 percent, and professional services at 23.8 percent, highlighting India’s strong capabilities in digital and knowledge intensive industries.
Trade Agreements Expanding Global Opportunities
India’s expanding network of trade agreements has also supported the growth of the services sector by improving market access in global markets. These agreements are providing greater mobility for professionals and creating new opportunities for Indian service providers across various industries.The statement noted that the convergence of talent, technology, and international partnerships positions India’s services sector to continue driving the country’s growth story on the global stage.
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