India's Services Exports Reach $421.3 Billion in FY26 Led by Telecom, Computer & Business Services
UPSC / SSC current affairs note · Economy
Why in news
India's services exports surged to $421.3 billion in FY2025-26, driven by telecom, computer & information services and business services. The government has expanded global market access for Indian service providers through free trade agreements and trade promotion initiatives.
Background
Services exports have grown steadily over the past five years from $254.5 billion in FY2021-22 to $421.3 billion in FY2025-26. Key sectors include telecommunications, computer & information services, and business services.
Key facts
India's services exports reached $421.3 billion in FY2025-26, up from $387.5 billion in FY2024-25.
Telecom, computer & information services contributed 49.03% of total services exports in FY2025-26 ($206.6 billion).
Business services accounted for 29.5% of total services exports in FY2025-26 ($124.2 billion).
The government uses a multi-pronged strategy including targeted market strategies, stakeholder consultations, and FTAs to boost services exports.
Recent FTAs include provisions for domestic regulation, mutual recognition agreements (MRAs), social security agreements, and double taxation avoidance.
India secured supportive frameworks for students in FTAs with Australia and New Zealand.
Social security agreements were included in FTAs with Oman, New Zealand, UK, and EU to avoid double contribution.
A social security agreement with the UK was signed on February 10, 2026, under India-UK CETA.
Provisions for traditional medicine were included in agreements with Oman and the EU.
India-Australia ECTA secured commitments to eliminate double taxation on IT services.
Prelims pointers
- Services exports FY2025-26: $421.3 billion
- Top sectors: Telecom, computer & information services (49.03%), Business services (29.5%)
- Source: RBI
- FTAs: India-Oman CEPA, India-New Zealand FTA, India-UK CETA, India-EU FTA, India-Australia ECTA
- Social Security Agreement with UK signed on 10 Feb 2026
- Mutual Recognition Agreements (MRAs) for professional qualifications
Mains angles
- Discuss the role of services exports in India's economic growth and balance of payments.
- Critically examine the impact of FTAs on India's services sector, especially IT and professional services.
- Analyze the government's strategy to boost services exports through regulatory reforms and market access.