India’s Services Exports Reach Record USD 421.3 Billion in FY 2025–26

India’s services exports rose to a record USD 421.3 billion during the financial year 2025–26, driven by strong growth in telecommunications, computer and information services, and other business services, according to data released by the Reserve Bank of India.

The country’s total services exports have expanded considerably over the past five years, rising from USD 254.5 billion in 2021–22 to USD 325.3 billion in 2022–23, USD 341.1 billion in 2023–24 and USD 387.5 billion in 2024–25 before reaching USD 421.3 billion in 2025–26.

Telecommunications, computer and information services remained the largest export segment, contributing USD 206.6 billion, or approximately 49.03 per cent of total services exports, during FY 2025–26. Exports from this segment have increased from USD 125.6 billion in 2021–22, reflecting India’s growing strength in information technology, digital services, software development and technology-enabled business operations.

Business services emerged as the second-largest contributor, with exports rising from USD 58.9 billion in 2021–22 to USD 124.2 billion in 2025–26. The sector accounted for nearly 29.5 per cent of India’s total services exports during the year. Together, telecommunications, computer and information services and business services contributed nearly four-fifths of India’s services export earnings.

The Government of India has adopted a multi-pronged strategy to strengthen services exports, including market-specific export plans, consultations with industry stakeholders, resolution of domestic sectoral challenges and improved access to international markets through Free Trade Agreements.

Recent FTAs have secured wider market access and national treatment for Indian service providers across digital and cross-border services, commercial establishments abroad and the temporary movement of skilled professionals. These agreements also contain provisions intended to make regulatory authorisation processes in partner countries more transparent, predictable, impartial and time-bound.

India has also sought structured and expedited mobility arrangements for skilled professionals, along with Mutual Recognition Agreements between professional bodies. These agreements are intended to facilitate the recognition of qualifications and licensing requirements, reducing the need for Indian professionals to undergo repetitive examinations, training programmes or lengthy certification procedures in foreign markets.

Supportive provisions for Indian students have been included in trade agreements with Australia and New Zealand. Recent agreements with countries and blocs including Oman, New Zealand, the United Kingdom and the European Union have also incorporated frameworks related to social security contributions.

An Agreement on Social Security Contributions between India and the United Kingdom was signed on February 10, 2026, following an understanding reached under the India–UK Comprehensive Economic and Trade Agreement. The arrangement seeks to prevent workers temporarily employed in either country from having to make duplicate social security contributions.

India has also secured dedicated provisions covering traditional medicine in agreements with Oman and the European Union. Commitments addressing double taxation on Indian information technology services were negotiated under the India–Australia Economic Cooperation and Trade Agreement.

Trade promotion activities are being carried out through the Services Export Promotion Council, which supports market development, policy advocacy, trade facilitation, capacity building, international outreach and buyer-seller engagement. These initiatives receive financial assistance under the Government’s Export Promotion Mission.

Recent promotional programmes included Indian participation in major international exhibitions covering tourism, education, healthcare, pharmaceuticals, gaming, entertainment and digital content. Indian pavilions were organised at events such as the Arabian Travel Market in Dubai, GETEX in the UAE, MIPCOM in Paris, the Malaysia Health and Pharma Expo, the Tokyo Game Show and Gamescom in Germany.

The council also organised conferences and national dialogues on logistics, higher education, skilling, legal technology, financial technology and school education during 2025.

The figures highlight the expanding role of services in India’s external trade and the country’s increasing presence in technology-driven and professional service markets. The information was provided by Minister of State for Commerce and Industry Jitin Prasada in a written reply in the Rajya Sabha on July 24, 2026.

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Source: PIB

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