Published: 30 January 2026PIB / PRS IndiaEconomy
Economic Survey: Services Sector Grows 9%, Contributes 54% of GDP in H1 FY26
The Economic Survey 2025-26 reports that the services sector remained the primary growth driver for the Indian economy, with GVA growth estimated at 9.3% in H1 FY26 and 9.1% for the full year — significantly higher than the 7% recorded in H1 FY25. The sector's share in GDP rose to 53.6% (nominal), with services comprising 56.4% of GVA — the highest ever recorded.
Services exports reached USD 387.6 billion in FY25, registering 13.6% growth — an all-time high. The sector's share in India's global exports rose to 4.3% (up from 2% in 2005). The growth was primarily driven by IT/software services, Global Capability Centres (GCCs), business process management, and professional services.
India is leveraging new trade agreements with the UK, Oman, and EFTA to expand market access across 120+ services sub-sectors, facilitating professional mobility and digital trade. These agreements reposition India from a back-office hub to a strategic partner in digital, AI, healthcare, and education services.
The Survey notes that services export growth averaged 14% during 2022-23 to 2024-25, underpinning India's increasing importance in global services trade.
0Mains angle
Q: Analyse the services sector's role as the primary driver of India's growth per the Economic Survey 2025-26.
Answer (50 words):
The Economic Survey 2025-26 estimates services Gross Value Added growth at 9.1% for FY26 and 9.3% in H1, well above 7% in H1 FY25, with sector share rising to 53.6% of GDP and 56.4% of GVA — highest ever. Services exports hit 387.6 billion dollars, growing 13.6%; global share 4.3%.
6-axis classification
CoverageNationalSubjectEconomicExamBasic Computer Instructor · CET Graduation · CET Senior Secondary · EO/RO · LDC · Mahila Supervisor · Patwar · PTI · RAS · REET · RPSC SI · School Lecturer · Senior Computer Instructor · Senior Teacher · UPSC · Vanpal · BothSourcePIB / PRS India
Practice MCQ from this story
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Linked questionMedium
What was the share of the services sector in India's GVA in FY26, according to the Economic Survey 2025-26?
Explanation · Correct answer CThe services sector comprised 56.4% of GVA in FY26 — the highest ever recorded, according to the Economic Survey 2025-26. In nominal GDP terms, the sector share was 53.6%. Services GVA growth was estimated at 9.1% for the full year. Option D (63.1%) is incorrect.
Frequently asked questions
What is the services sector's contribution to India's GDP per Economic Survey 2025-26?
The **Economic Survey 2025-26** reported that India's services sector grew at **9.1% in FY26**, with the sector's share in GDP rising to **53.6% (nominal)** and comprising **56.4% of GVA** — the **highest ever recorded**. In H1 FY26, services GVA growth was even higher at **9.3%**.
What was India's services exports figure in FY25 according to Economic Survey 2025-26?
India's **services exports reached USD 387.6 billion** in FY25, registering **13.6% growth** — an all-time high. The sector's share in India's global exports rose to **4.3%** (up from 2% in 2005). Growth was driven by **IT/software, GCCs (Global Capability Centres), BPM, and professional services**.
Which sub-sectors are driving India's services sector growth?
The **Economic Survey 2025-26** identified key services growth drivers: **IT/software services**, **Global Capability Centres (GCCs)** (India has 1,700+ GCCs), **Business Process Management (BPM)**, **professional services**, and **financial services**. India is leveraging new trade agreements with the **UK, Oman, and EFTA** to expand market access across 120+ services.
How has India's share in global services exports changed over two decades?
India's share in **global services exports** has grown from **2% in 2005** to **4.3% in FY25**, according to the **Economic Survey 2025-26**. This represents a more than doubling of India's global services market share, driven primarily by IT exports, GCCs, and the growth of India's knowledge economy.
What is the GVA growth of India's services sector in H1 FY26?
India's services sector recorded **GVA growth of 9.3% in H1 FY26** — significantly higher than the **7%** growth in H1 FY25. The full-year FY26 estimate stands at **9.1%**. This makes the services sector the **primary growth engine** of India's economy, far outpacing agricultural and industrial growth rates.
