India's Services Sector
Structure and Global Competitiveness
India's services sector contributes approximately 55% of GDP and accounts for ~40% of total employment. It is the primary engine of India's global export earnings — services exports exceeded USD 340 billion in FY2024, with IT/ITES (Information Technology and IT-Enabled Services) the dominant component. India's services trade surplus — the excess of service exports over service imports — is a key offset to its merchandise trade deficit, making services performance central to India's current account balance.
- India is the world's largest exporter of IT services, accounting for approximately 10–12% of global IT outsourcing.
- "International sales surged" in February 2026 at the fastest pace since August 2025 — indicating strong demand for Indian services from global clients despite domestic demand cooling.
- Services PMI's "international business" sub-index measures new export orders from overseas clients, directly reflecting global appetite for Indian services.
- India's services exports are concentrated in IT (Bengaluru, Hyderabad, Pune tech corridors), financial services, business process outsourcing (BPO), and professional services.
- The rupee's exchange rate, US and European economic health, and visa availability significantly affect India's services export competitiveness.
● Tracked since February 02, 2026 · last seen March 04, 2026 · updates as the daily brief publishes
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