The government stated today that the country's services exports continue to show strong growth, with exports reaching over $348 billion during the current financial year (FY), from April to January. Services exports accounted for 10% of the country's GDP in the first half of FY26, highlighting the sector's growing contribution to the economy.
The government highlighted the proposed Union Budget 2026-27, stating that several measures have been taken to further strengthen the services sector. These include tax holidays until 2047 for foreign companies providing cloud services using infrastructure located in India, along with reforms in the Safe Harbour regime for IT services and improvements in Advance Pricing Agreements to simplify tax compliance.
The government said that software services remain the largest component of India's services exports, contributing over 40%, while business and consulting services have emerged as major growth drivers. Expanding Global Capability Centres, growing artificial intelligence capabilities, and improved global market access through trade agreements are also expected to accelerate India's services exports. The government aims to make India a global leader in services trade, with a 10% global share by 2047, supporting growth, employment, and integration with the global economy.