New Delhi: The Economic Survey 2025–26 reported that services exports growth more than doubled to 14 per cent during FY 23–FY 25, compared with 7.6 per cent in the pre-pandemic period, reinforcing the sector’s role as India’s main growth engine.
The survey said the services sector contributed more than half of India’s Gross Value Added and acted as a stabilising force amid global uncertainty and weak industrial activity. It noted that India emerged as the world’s seventh-largest exporter of services, with its share in global services trade rising from 2 per cent in 2005 to 4.3 per cent in 2024.
Presenting the survey in Parliament, Union Finance Minister Nirmala Sitharaman stated that services delivered consistent 7 to 8 per cent growth annually. In contrast, agriculture and industry faced sharper cyclical swings. As a result, services became a high-growth, low-volatility anchor for the economy.
The survey said FY 26 witnessed across-the-board expansion in services. Growth in the services sector reached 9.1 per cent and became the main driver of GVA growth in the First Advance Estimates. All major sub-segments recorded growth ranging from about 8 per cent to 9.9 per cent.
Global trends showed that while the pandemic disrupted contact-intensive services, it accelerated digitally delivered services. In 2024, services trade gained a higher share in global GDP compared with pre-pandemic levels.
Economic Survey maps services exports growth and new frontiers
The survey said India mirrored global trends, with services-sector FDI rising to 80.2 per cent of total FDI during FY 23–FY 25. Most inflows went into information and communication, professional services, finance, insurance, energy and trading.
Services exports growth remained broad-based. Software services, forming over 40 per cent of services exports, grew at an average 13.5 per cent during FY 23–FY 25. Professional and management consulting expanded by 25.9 per cent, increasing its export share significantly.
The survey noted that services exports growth moderated to 8 per cent during FY 26 due to global uncertainty. Still, services exports provided a buffer against weak global goods trade. Their share in GDP rose to 10 per cent in the first half of FY 26.
New growth frontiers emerged in media, entertainment and space technologies. The survey highlighted opportunities in the orange economy, ocean commercialisation, data centres and the concert economy to sustain services-led growth.
Services also remained a key employment driver. Urban services employment rose to 61.9 per cent in FY 26, while EPFO data showed services accounted for over half of net formal job creation.
