Growth of Services Sector in India - Infographic

India‘s Domestic IT Services market is expected to grow by 3-5% in FY25, also the operating profit for the sector to remain 21-22%.

Advantage India

Robust
Demand

*India is the export hub for software services.

*On July 2, 2025, IDC reported that India’s domestic IT & Business Services market reached Rs. 1,41,389 crore (US$ 16.5 billion) in 2024, growing by 6.9% YoY, while maintaining a projected CAGR of approximately 8% between 2022 and 2027.

*India's software service industry is expected to reach Rs. 86,63,000 crore (US$ 1 trillion) by 2030.

*India’s services exports stood at approximately Rs. 11,00,517 crore (US$ 128 billion) in FY26 (April-July 2025), while service imports stood at Rs. 5,56,128 crore (US$ 65 billion) in the same period reinforcing India's global standing.

Competitive
Advantage

* India has climbed to the 39th position out of 133 economies in the Global Innovation Index (GII) 2024, according to the World Intellectual Property Organization (WIPO).

*The Confederation of Indian Industry (CII) has unveiled a plan to position India as a global logistics hub, calling for a collaborative effort among stakeholders to unlock opportunities across industries and regions. The initiative aims to create aspirational career paths, facilitate professional growth, and develop leadership opportunities.

Policy
Support

*The Ministry of Health and Family Welfare (MoHFW) is leveraging artificial intelligence (AI) to enhance public health services across India focusing on developing and adopting AI-driven healthcare solutions.

*Government is planning to setup over 100 branches of India Post Payment Bank in the Northeast region to enhance banking services.

Increasing
Investments

*100% FDI is allowed for any regulated financial sector activity under the automatic route.

*As of March 2025, experts forecast that India is poised to attract over Rs. 52,32,600 crore (US$ 610 billion) in alternative investments, primarily private equity and venture capital, from 2025 to 2027, substantially powering the startup ecosystem.

Snapshot Showcase Infographics Reports

Last updated: Oct, 2025

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