India's Services Sector Fuels Record-breaking Export Surge in FY26

India's services sector played a pivotal role in achieving record exports of USD 863.1 billion in FY26. With services exports growing significantly faster than merchandise, India's export composition shifted markedly, highlighting the sector's increasing importance to the national economy.

India's services sector has cemented its place as the key force behind the nation's unprecedented export total of USD 863.1 billion in FY26, according to figures released by the Ministry of Commerce and Industry. This marks an all-time high for the combined exports of merchandise and services, driven by a compound annual growth rate (CAGR) of 5.7% from FY15 to FY26.

During this period, services exports surged from USD 158.1 billion in FY15 to a remarkable USD 421.3 billion in FY26, achieving a CAGR of 9.3%. This growth rate notably surpassed that of merchandise exports, elevating the services sector's share of total exports from 33.8% to 48.8% in underlining its pivotal role in India's export infrastructure.

While merchandise exports also displayed steady growth, increasing from USD 310 billion in FY15 to USD 441.7 billion in FY26, they trailed behind at a CAGR of 3.3%. Non-petroleum exports hit a new high of USD 387.9 billion, surpassing prior records, thus showing the strength and resilience of India's manufacturing and export sectors despite pandemic challenges. (ANI)