India’s services exports rose to $421.3 billion in the financial year 2025-26, driven by telecommunications, computer and information services, and business services. The growth highlights India’s expanding role in the global digital economy.
Services exports grew 8.7% from the previous year, as businesses worldwide increased their reliance on digital services, cloud computing, software solutions and technology-enabled support. India, one of the world’s largest suppliers of IT and business services, is now looking to move beyond traditional outsourcing and capture a larger share of global digital markets.
According to government data, telecommunications, computer and information services accounted for about 49% of India’s total services exports. Business services, including professional and management consulting, contributed around 29.5%.
The Ministry of Commerce and Industry said India is using trade agreements, export promotion programmes and industry partnerships to help service providers expand overseas.
“In order to enhance services exports, the government of India follows a multi-pronged strategy. It comprises focused strategies for enhancing exports [that] are undertaken for specific markets and sectors,” minister of state for Ministry of Commerce and Industry, Jitin Prasada, informed in a written reply in Rajya Sabha, the upper house of India’s bicameral Parliament.
Unlike physical goods exports, digital services are less affected by supply chain disruptions. This has helped India build a strong position in software development, IT consulting, business process management and other technology-driven services.
Taking digital services global
India’s services export growth reflects a wider transformation in global trade. Companies worldwide are increasingly outsourcing technology, research, customer support and specialised business functions to countries with skilled talent.
India’s next challenge is to move beyond its reputation as an IT outsourcing hub and become a broader provider of high-value digital and professional services.
Free trade agreements (FTAs) are a key part of this strategy. Through recent agreements, India has secured better market access for service providers in sectors such as technology, healthcare and education. These agreements allow Indian companies to provide services through digital channels, establish operations abroad and send professionals overseas for temporary assignments.
The government said newer FTAs also include measures to make regulatory processes more transparent and predictable, helping reduce barriers for Indian companies entering foreign markets.
Building the next phase of digital growth
Skilled professionals remain central to India’s services export strategy. Recent agreements with countries including the United Kingdom, Australia, New Zealand, Oman and members of the European Union include provisions related to social security, taxation and professional mobility.
For Indian workers taking short-term overseas assignments, such arrangements can reduce challenges like paying social security contributions in multiple countries. A recent India-UK agreement aims to prevent temporary workers from facing double payments while working across borders.
With global demand for digital services continuing to rise, India has an opportunity to evolve from a major IT service provider into a broader technology and innovation hub. The next phase of growth will depend on creating higher-value services, strengthening digital capabilities and helping Indian companies compete more effectively in global markets.