Economic Survey 2025-26: India’s services sector emerged as a stabilising force amidst global uncertainty
The Hindu
India's services sector emerges as a stabilising force, driving growth and innovation amidst global uncertainty, per the Economic Survey 2025-26.
Against the backdrop of global uncertainty and subdued global industrial activity, India’s services sector has emerged as a stabilising force, contributing more than half of the country’s Gross Value Added (GVA) and serving as a major driver of exports and employment, the Economic Survey 2025-26 has pointed out.
Economic Survey 2025-26 updates
Highlighting the sector’s rapid expansion in digitally delivered, knowledge-intensive, and experience-led segments, as well as its comparative strength in trade and foreign direct investment, the Survey, through a detailed examination of recent developments and high-frequency indicators has established that services have underpinned economic momentum, buffered external shocks, and supported urban employment dynamics.
As per the Economic Survey Service’s share in GDP rose to 53.6% in H1 FY26; its share in GVA stood at the highest ever — 56.4% — as per First Advance Estimates (FAE) of FY26 which shows the rising weight of modern, tradable and digitally delivered services.
India is the world’s seventh-largest exporter of services, with its share in global services trade more than doubling from 2% in 2005 to 4.3% in 2024.
According to the Survey the services sector continued to be the largest recipient of foreign direct investment (FDI) inflows, accounting for an average of 80.2% of total FDI during FY23-FY25, up from 77.7% in the pre-pandemic period (FY16-FY20).
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