India's Services Exports Rise to USD 421.3 Billion in FY 2025-26, Led by Telecommunications, Computer and Information Services and Business Services

Key Highlights:

• India's services exports are projected to reach USD 421.3 billion in FY 2025-26, demonstrating significant growth.
• Telecommunications, computer and information services are expected to contribute the largest share at 49.03% (USD 206.6 billion) in FY26.
• Business services are the second largest contributor, projected at 29.5% (USD 124.2 billion) of total services exports in FY26.
• The government employs a multi-pronged strategy including Free Trade Agreements (FTAs), addressing domestic challenges, and trade promotion.
• The Services Export Promotion Council (SEPC) plays a crucial role in market development, trade facilitation, and export promotion activities.

Detailed Insights:

• Services exports have shown a consistent upward trend, growing from USD 254.5 billion in FY 2021-22 to the projected USD 421.3 billion in FY 2025-26.
• FTAs secure comprehensive market access and national treatment for Indian service providers, facilitating cross-border, commercial presence, and temporary movement of professionals.
• Recent FTAs incorporate disciplines on domestic regulation to ensure predictable, objective, and transparent authorization processes for services.
• Mutual Recognition Agreements (MRAs) are negotiated to facilitate recognition of qualifications and licensing, avoiding duplicative testing for professionals.
• Social Security Agreements (SSAs), secured in FTAs like India-Oman CEPA and India-UK CETA, prevent double payments and ensure continuity of social security for workers.
• Provisions for traditional medicine and elimination of double taxation on IT services have also been secured in agreements with Oman, EU, and Australia.
• SEPC organizes various events and participates in international fairs to promote Indian services, such as the Medical Value Tourism Summit and Indian Pavilions at global exhibitions.

Key Concepts Involved:

• Free Trade Agreements (FTAs): International treaties between two or more economies to reduce barriers to trade and investment.
• Mutual Recognition Agreements (MRAs): Agreements between countries to recognize each other's professional qualifications and standards.
• Social Security Agreements (SSAs): Bilateral agreements that protect the social security rights of workers who move between countries.
• Services Export Promotion Council (SEPC): An organization established by the Department of Commerce to promote India's services exports.