India's Services Exports Hit USD 421B
Source: PIB India, July 24, 2026 | Ministry of Commerce & Industry | Rajya Sabha Written Reply | Release ID: 2288851
💻 India's Services Exports Hit USD 421.3 Billion in FY2025-26 — IT and Telecom Alone Carry Half the Number
India's services exports reached USD 421.3 billion in FY2025-26, with IT, telecom and business services continuing to account for the largest share of overseas earnings
But the headline isn't the most interesting part. What's more useful is the sector split — Telecommunications, Computer and Information Services alone account for 49.03% of all services exports. Nearly half. Business Services add another 29.5%. Together, those two categories drive almost 80% of India's services export engine.
For exporters tracking this — these numbers come from RBI data compiled by the Ministry of Commerce. They're the baseline against which every FTA services chapter, every SEPC market development activity, and every Mutual Recognition Agreement negotiation is benchmarked.
Services Exports Growth — Five-Year Trend (USD Billion)
| Sector | 2021-22 | 2022-23 | 2023-24 | 2024-25 | 2025-26 | Share FY26 |
|---|---|---|---|---|---|---|
| Total Services | 254.5 | 325.3 | 341.1 | 387.5 | 421.3 | 100% |
| Telecom, Computer & Info Services | 125.6 | 152.3 | 163.6 | 183.3 | 206.6 | 49.03% |
| Business Services | 58.9 | 80.3 | 88.6 | 107.2 | 124.2 | 29.5% |
📋 Government Initiatives for Services Exports
This information was given by Minister of State for Commerce and Industry, Shri Jitin Prasada, in a written reply in Rajya Sabha. The government follows a multi-pronged strategy to enhance services exports:
1. Market Access Through FTAs
India has secured comprehensive market access and national treatment in services to allow Indian service providers to operate in partner countries on no less favourable terms — including digital mode, commercial presence and temporary movement of professionals. Recent FTAs have incorporated disciplines on domestic regulation to ensure that authorisation processes for key services are time-bound, predictable, objective, impartial and transparent.
Key FTA provisions relevant to services exporters:
- Mutual Recognition Agreements (MRAs): Facilitative provisions for time-bound MRA negotiations between professional bodies to recognise qualifications and licensing — so Indian professionals don't face duplicate testing or re-certification in partner countries
- Australia and New Zealand FTAs: Supportive framework secured for Indian students in partner countries
- Social Security Agreements (SSA): Secured in India-Oman CEPA, India-New Zealand FTA (side letter), Double Contribution Convention in India-UK CETA and India-EU FTA — workers will not pay double social security contributions in both countries
- Traditional Medicine: Dedicated provisions secured in FTAs with Oman and EU
- Double Taxation: India-Australia ECTA secures commitments to eliminate double taxation on India's IT services
2. SEPC Trade Promotion Activities
The Services Export Promotion Council (SEPC), set up by the Department of Commerce, plays a key role in services trade promotion. Recent SEPC activities include:
- Medical Value Tourism (MVT) Summit — 4-5 April 2025, organised with Tamil Nadu government, featuring hospitals, wellness centres, AYUSH centres and medical institutions
- Indian Pavilions at global events — Arabian Travel Market (ATM) Dubai May 2025, Global Education & Training Exhibition (GETEX) Dubai April-May 2025, MIPCOM Paris October 2025 ("Waves Bazaar" theme), Malaysia Health & Pharma Expo November 2025, Tokyo Games Show September 2025, GAMESCOM Cologne August 2025
- Industry conferences — Future-Ready Logistics India August 2025, International Conference on Transforming Higher Education September 2025, Finolegal Convergence Summit December 2025, National Dialogue on School Education December 2025
3. Domestic Challenge Resolution
Domestic sectoral challenges impeding services exports are identified in consultation with stakeholders and addressed through concerned departments and ministries — including regulatory bottlenecks, licensing issues and sector-specific market access barriers.
✅Key Considerations for Exporters
USD 421.3 billion is a number worth knowing. The policy measures accompanying this growth are particularly relevant for exporters in IT, professional services, healthcare and tourism.
| If You Export | What's Changed | Action to Take | Status |
|---|---|---|---|
| IT / Software Services | Double taxation eliminated in India-Australia ECTA — also under negotiation in India-EU FTA Example: An Indian SaaS company billing Australian clients should review whether the India–Australia tax provisions are correctly reflected in its invoicing and tax filings |
Check if your Australia invoices are claiming double tax relief — many IT exporters miss this | ☐ |
| Professional Services (CA, Legal, Consulting) | MRA provisions in FTAs reduce re-certification burden in partner countries Example: An architecture or engineering consultancy bidding for overseas contracts should monitor whether Mutual Recognition Agreements (MRAs) covering its profession have entered into force in the destination country |
Check if your professional body has an active MRA under any current FTA — India-UK CETA, India-UAE CEPA | ☐ |
| Healthcare / Medical Tourism | SEPC actively promoting India's medical value tourism — MVT Summit, international exhibitions Example: A hospital participating in an international medical tourism programme may benefit from government-supported promotion through sector-specific events and buyer outreach. |
Register with SEPC to participate in upcoming international health and pharma exhibitions | ☐ |
| Workers Deployed Abroad | SSA provisions in India-Oman CEPA, India-NZ FTA, India-UK CETA, India-EU FTA — no double social security contributions | Check if your employees in these countries are claiming SSA benefits — most HR teams are unaware | ☐ |
| Traditional Medicine / AYUSH | Dedicated provisions in India-Oman CEPA and India-EU FTA | Apply through AYUSH Export Promotion Council — Oman and EU channels now formally open | ☐ |
| Education / EdTech Services | Supportive student framework in India-Australia and India-NZ FTAs | Explore partnership with Indian institutions for joint degrees — both FTAs have provisions for this | ☐ |
| Gaming / Entertainment | SEPC participated in GAMESCOM 2025 and Tokyo Games Show — active market development underway | Register with SEPC for next round of gaming and entertainment international exhibitions | ☐ |
❓ Frequently Asked Questions (FAQs)
1. How should exporters determine whether an FTA benefit applies to a specific services contract?
Businesses should review the agreement's services schedules, applicable sector commitments, market access conditions, national treatment provisions and any licensing or qualification requirements before relying on preferential access.
2. How does the India-Australia ECTA help IT exporters specifically?
The agreement includes negotiated provisions to eliminate double taxation on India's IT services, meaning Indian companies billing Australian clients aren't taxed on the same income in both countries. Exporters should check whether their existing Australia-facing invoices are correctly claiming this relief, as many firms haven't updated their tax filings to reflect it.
3. What do Social Security Agreements (SSAs) in India's FTAs actually cover?
SSAs prevent Indian professionals working temporarily abroad from paying social security contributions in both India and the host country. This is currently secured under India-Oman CEPA, a side letter in the India-New Zealand FTA, the Double Contribution Convention in India-UK CETA (signed 10 February 2026), and provisions under negotiation in the India-EU FTA. Companies with staff deployed in these countries should verify their HR teams are actually claiming these exemptions.
4. What role does SEPC play in services export promotion, and how can exporters access it?
The Services Export Promotion Council (SEPC), set up by the Department of Commerce, handles market development, trade facilitation, policy advocacy, and international exhibition participation across services sectors — funded through the Export Promotion Mission. Exporters in IT, healthcare, education, gaming, or professional services can register with SEPC to participate in curated international events, such as the Medical Value Tourism Summit or sector-specific pavilions at global trade fairs.
5. Are Mutual Recognition Agreements (MRAs) already in force, or are they still being negotiated?
Most MRA provisions are facilitative frameworks built into FTAs — they set time-bound negotiation commitments between professional bodies rather than granting automatic recognition. This means qualified professionals (CAs, legal practitioners, consultants) should confirm with their specific regulatory or professional body whether an MRA has actually been concluded under a given FTA before assuming reduced re-certification requirements apply.
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