Commerce and Industry Minister Piyush Goyal has urged India’s services sector to set its sights on surpassing merchandise exports in the next financial year, targeting $450 billion in exports for FY2025–26. Speaking at the Nasscom Global Confluence 2025, Goyal said the sector’s rapid expansion offers an opportunity to lead India’s trade growth.
Robust Growth in Services Amid Global Headwinds
While goods exports have been affected by global uncertainties, the services sector continues to grow steadily. In FY23–24, India’s services export rose by 4.85% to $341 billion, and in the April–February period of FY24–25, exports surged by 14.1% to $354.9 billion.
In contrast, merchandise exports contracted 3.1% in FY23–24 and rose only 0.06% to $395.6 billion in the current fiscal to date. Goyal noted that with current momentum, services could surpass goods exports next year—a historic shift in India’s trade dynamics.
Role of GCCs and Emerging Services
Goyal attributed much of the sector’s growth to India’s expanding network of Global Capability Centres (GCCs), which now number 1,650. While IT and ITeS remain central, accounting for $200 billion of services exports, sectors such as tourism, accounting, and financial services are witnessing renewed momentum.
He emphasized that 15–18% annual growth in services exports is realistic, especially as companies adopt new technologies and expand remote delivery models.
Also read: Goyal Urges Electronics Sector to Target $100B in Exports
Remote Delivery to Boost Competitiveness
Highlighting lessons learned during the pandemic, Goyal said remote delivery of services should continue as a cost-effective, competitive model. By delivering from India instead of client locations, companies reduce costs, ensure local salary payouts, and contribute more directly to the Indian economy through domestic tax collection.
With a strong digital infrastructure and evolving global demand, India’s services sector is now being positioned as a key driver of trade growth. Goyal’s call to action reflects confidence in the sector’s potential to take the lead in shaping the next phase of India’s global economic engagement.
