India's services exports reached $421.3 billion in fiscal year 2025-26, marking a sustained multi-year expansion fuelled by telecommunications, computer and information services, and business services, the government informed Parliament on Friday, 25 July 2025. The figures were shared by Minister of State for Commerce and Industry Jitin Prasada in the Rajya Sabha, who credited free trade agreements (FTAs) and targeted trade promotion events as key enablers of the growth.

Sector-wise breakdown

Telecommunications, computer and information services emerged as the dominant contributor, accounting for $206.6 billion of total services exports in FY26. Business services followed with $124.2 billion. Together, these two categories represent the backbone of India's services export engine, reflecting the country's established strength in IT outsourcing, software development, and professional services.

A five-year growth trajectory

The $421.3 billion figure for FY26 represents a remarkable climb from $254.5 billion in 2021-22. The intervening years tell a consistent upward story: $325.3 billion in 2022-23, $341.1 billion in 2023-24, and $387.5 billion in 2024-25. This translates to cumulative growth of approximately 65% over five years, outpacing many comparable economies in services trade expansion.

Role of FTAs and market access

According to Minister Prasada, the government's strategy rests on a multi-pronged approach: focused market and sector strategies, addressing domestic constraints through stakeholder consultation, and expanding market access via FTAs. India's recent trade agreements have secured comprehensive market access and national treatment for Indian service providers across modes including cross-border digital delivery, commercial presence in partner countries, and temporary movement of professionals.

Notably, India's FTAs now incorporate disciplines on domestic regulation, requiring that authorisation processes for key services be time-bound, predictable, objective, impartial, and transparent. This is designed to shield Indian service suppliers from opaque or burdensome regulatory barriers in partner markets.

Professional mobility and mutual recognition

A significant structural gain embedded in recent FTAs is the creation of structured, expedited mobility routes for skilled Indian professionals to deliver services in foreign markets. The government has also worked to secure Mutual Recognition Agreements (MRAs) between professional bodies, enabling partner nations to accept each other's certifications without requiring duplicative local testing, additional training, or lengthy re-certification processes.

In a sector-specific development, dedicated provisions covering traditional medicine were secured in agreements with Oman and the European Union — a reflection of India's push to export its comparative advantage in Ayurveda and allied health disciplines.

What comes next

With services exports now exceeding $400 billion for the first time, the policy focus is expected to shift toward deepening existing FTA commitments and operationalising MRAs across more professional categories. Industry observers note that sustained growth will depend on maintaining India's talent pipeline in high-value IT and business services, while expanding the services export basket beyond its current concentration in a handful of sectors.