India has rapidly transformed into a global leader in services exports, driven largely by the technology sector and the exponential growth of Global Capability Centres (GCCs). This remarkable growth is a key pillar of India’s emergence as the world’s fourth-largest economy in 2025 and its aspiration to become the third-largest by 2027.

Services Sector Growth Outpaces Goods Exports

India’s services exports grew at a compound annual growth rate (CAGR) of 14.8 percent, far outpacing goods exports. Technology exports alone crossed $200 billion in fiscal year 2025, contributing to India’s position as the seventh-largest global services exporter with a 4.3 percent global market share. The services segment includes telecom, IT, and business services, which make up nearly three-quarters of the total services exports, with Information Technology accounting for about 7.5 percent of India’s GDP. The services export total reached $354.90 billion for the fiscal year 2025 (April–February), reflecting robust growth compared to the previous year.

Global Capability Centres Boost Innovation and Employment

A major driver behind this surge is the extraordinary growth of Global Capability Centres. India hosts the world’s largest GCC ecosystem, with around 1,850 active centres as of 2025, employing more than 2 million professionals. These numbers are expected to grow sharply, with over 2,500 GCCs projected by 2030, generating revenues exceeding $100 billion. These centres are not merely back-office hubs anymore but have evolved into innovation and research hotspots, catering to major multinational corporations especially in technology, financial services, and consulting sectors. The GCC expansion is particularly concentrated in premier cities such as Bengaluru, Hyderabad, Chennai, Delhi NCR, Mumbai, and Pune, though tier-II cities are increasingly gaining prominence.

With the rise of GCCs, there has also been a significant demand surge in supporting infrastructure like office spaces. Commercial real estate in key Indian cities is witnessing notable growth due to these centres leasing vast areas. The GCCs focus increasingly on advanced roles in artificial intelligence, data sciences, cloud computing, FinOps, and cybersecurity, reflecting the shift towards cutting-edge technology and innovation.

Structural Reforms and Digital Finance Fuel Confidence

India’s economic progress has been further bolstered by significant structural reforms like the simplification of the Goods and Services Tax to a two-slab system, the Insolvency and Bankruptcy Code, Real Estate Regulation, and corporate tax cuts. These measures, alongside the globalisation of India’s unified payments system (UPI) now connected with eight countries, have reinforced investor confidence. UPI’s staggering daily transaction volume surpasses global payment giants, positioning India as a leader in digital finance.

In sum, India’s trajectory from a “Fragile 5” economy in 2013 to a global services and innovation powerhouse today reflects a profound shift in global economic dynamics. The strategic growth of services exports, especially in IT and business services, combined with the expanding GCC ecosystem, places India squarely on the path to becoming one of the world’s foremost economic giants by 2027. The country’s policies and business environment continue to create fertile ground for sustained growth in these sectors.

This transformation is emblematic of India’s evolving role in the global economy: a services-led growth story fuelled by technology, innovation, and a dynamic workforce ready to meet the challenges of the future.​

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