Growth of Services Sector in India - Infographic

In FY23, India's services exports rose by 42% to US$ 322.72 billion from US$ 254 billion in FY22 and are expected to reach US$ 400 billion in FY24.

Advantage India

Robust
Demand

* India is the export hub for software services. The Indian IT outsourcing service market is expected to witness 6–8% growth between 2021 and 2024.

* India‘s IT and business services market is projected to reach US$ 19.93 billion by 2025.

* India's software service industry is expected to reach US$ 1 trillion by 2030.

Competitive
Advantage

* Growing participation in PPP.

* In September 2023, India retains to 40th rank in the Global Innovation Index (GII), due to successful advancements in services that are technologically dynamic and can be traded internationally.

Policy
support

* Government is promoting necessary services and will charge zero tax for education and health services under the GST regime.

* Centre has formulated ‘Action Plan for Champion Sectors in Services’ to give focused attention to 12 identified Champion Services Sectors.

Increasing
Investments

* The Indian services sector was the largest recipient of FDI inflows worth US$ 108 billion between April 2000-December 2023.

* According to the Ministry of Commerce and Industry, the service sector received US$ 5.1 billion in FDI equity inflows in FY24 (April-December).

* According to the IVCA-EY monthly PE/VC roundup, October 2022 recorded investments worth US$ 3.3 billion across 75 deals, including six large deals worth US$ 2.2 billion.

Last updated: May, 2024

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