Budget 2026 bets big on services; panel proposed to lift global share to 10% by 2047

India intends to double down on its services sector edge as part of its efforts to emerge as a developed nation, with the Budget proposing the formation of a high-powered panel to suggest steps to more than double the country’s global share in the sector to 10% by 2047.

The idea is to meet the aspirations of millions of skilled professionals and further bolster the country’s software dominance, while expanding its presence in other services areas globally.

Finance Minister Nirmala Sitharaman said the Education to Employment and Enterprise Standing Committee will identify priority areas with potential for high services-sector growth, employment and exports. The panel will also gauge the impact of emerging technologies, including artificial intelligence (AI), on jobs and skill requirements.


Close to 250 million individuals have come out of multidimensional poverty through a decade of “sustained and reform-oriented efforts”, according to the finance minister. “Our government has, therefore, decided to place a renewed emphasis on the services sector to provide a pathway to fulfilling aspirations of a youthful India,” Sitharaman said.

To create a “new range of skilled career pathways for our youth”, the minister proposed interventions across multiple sectors, including digital and AI-enabled services, health, education, yoga, Ayurveda, medical tourism, hospitality and creative services, along with skill development in these areas.

The Budget also announced steps, including greater safe harbour protection from liability, to further consolidate India’s position in information technology and related services. Any foreign company providing cloud services to global customers using data centre facilities in India will be eligible for a tax holiday until 2047.

The services sector accounted for more than 55% of the country’s economy and about 47% of its exports in 2024–25, making it a crucial driver of employment. Importantly, the services trade surplus has a benign impact on the overall trade deficit. The surplus touched $152 billion in the first three quarters of this fiscal, compared with $136 billion a year earlier, significantly offsetting the goods trade deficit of $248 billion during the same period.

“The Budget presents a forward-looking framework to strengthen India’s services sector, enhance global competitiveness and deepen integration with international markets,” said Upasana Arora, chairperson, Services Export Promotion Council.