India is quickly becoming a major global center for service exports. Officials from the National Stock Exchange (NSE) revealed that these exports are growing at an impressive compound annual rate of 14.8%, significantly outperforming goods exports, which saw a 9.8% growth.
The NSE emphasized that this economic transformation is fueled by robust growth in the services sector, a series of impactful structural reforms, and India’s favorable demographic profile.
Tirthankar Patnaik, the chief economist at NSE, boldly stated, “India will be to services what China has been to manufacturing. It is indeed emerging as a global hub for services exports.”
An official, presenting to a media delegation from Jammu and Kashmir, reiterated that over the last three decades, India’s services exports have consistently grown at a CAGR of 14.8%, surpassing the 9.8% growth rate of goods exports.
Currently, India commands a 4.3% share of global services exports, securing its position as the seventh-largest player worldwide. This growth is predominantly driven by telecom, IT, and business services, which collectively account for almost 75% of all service exports. Notably, technology exports alone are projected to exceed $200 billion by fiscal year 2025.
Furthermore, India has established itself as the world’s leading center for Global Capability Centres (GCCs). The number of these centers has steadily increased from 1,430 in FY19 to 1,700 in FY24, with projections indicating a rise to 2,200 by FY30, creating employment for up to 2.6 million professionals.
Data also suggests that the GCC market is set to grow significantly, from $40 billion in FY19 to an estimated $100 billion by FY30. This expansion is supported by crucial structural and economic reforms such as the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code, the Real Estate Regulation Act (RERA), and strategic corporate tax reductions.
Officials additionally noted that liberalized policies, including faceless tax assessments, simplified labor laws, and performance-linked incentive programs, have significantly boosted investor confidence. Concurrently, broader privatization efforts and globalization initiatives, such as bank mergers, new foreign trade agreements, increased Foreign Direct Investment (FDI), and the international expansion of India’s Unified Payments Interface (UPI), have further bolstered the national economy.
Addressing social empowerment, the officials underscored transformative reforms impacting daily lives: over 100 million LPG connections provided under the Ujjwala Yojana, more than 120 million toilets constructed as part of the Swachh Bharat Mission, and widespread financial inclusion achieved through the Jan Dhan Yojana.
These measures, combined with robust service exports, a dynamic and growing workforce, and increasing engagement in capital markets, position India to become a $5-trillion economy in the coming years.
The presentations forecast India’s real GDP growth at 6.3-6.8%, with nominal growth expected to be around 12%. According to NSE data, this trajectory means India is on track to become the world’s third-largest economy by 2027, surpassing both Japan and Germany.
The exchange also detailed a comprehensive growth strategy focusing on boosting private investment, fortifying Micro, Small, and Medium Enterprises (MSMEs), narrowing the education-employment divide, and fostering green financing alongside agriculture-led development. An NSE official concluded, “NSE’s analysis unequivocally confirms India’s evolution into a services-driven economic powerhouse.”