Notwithstanding the threat of a recession looming ahead for the developed economies, the Indian services sector continues to attract significant foreign investment, contribute significantly to exports and provide large-scale employment.

Ongoing policy reforms including lowering trade barriers, easing FDI regulations, and deregulation supported by institutional frameworks and digital technologies have further significantly increased the ease of doing business in India both for domestic and foreign firms. An extensive range of service industries have thus experienced double digit growth in recent years.

India's services sector is poised to grow at a healthy rate in the coming years too. By end of 2023, India's IT and business services sector is expected to reach US$ 14.3 billion with 8% growth. The country's digital economy & healthcare industry are estimated to reach US$ 1 trillion & US$ 372 billion respectively by 2025.

Recognising the importance of continued growth in the services sector, Government of India has provided several incentives across a wide variety of sectors like health care, tourism, education, engineering, communications, transportation, information technology, banking, finance and management among others. The government is also making significant efforts to enhance India's commercial services exports share in the global services market and permit a multi-fold expansion in the GDP.