Government of India has reported that the
country's service exports exceeded US$ 348 billion during the April-to-January
period of the current financial year
¨ Government of India has
reported that the country's service exports exceeded US$ 348 billion during the
April-to-January period of the current financial year.
¨ In the first half of the
financial year 2026, the services sector contributed approximately 10 percent
to India's GDP.
¨ This underscores the
growing significance of the services industry within the national economy.
¨
The government has
emphasized several initiatives in the proposed Union Budget for 2026-27.
¨
These measures are aimed
at further strengthening the services sector.
¨
Foreign companies
providing cloud services utilizing existing infrastructure in India will be
eligible for tax exemptions.
¨
These tax benefits will
remain in effect until the year 2047.
¨
The government has also
introduced reforms to the Safe Harbour rules applicable to IT services.
¨
The objective of these
reforms is to simplify tax compliance for companies.
¨
Improvements have also
been made to the Advance Pricing Agreement framework.
¨
These changes are
designed to streamline tax procedures.
¨ Software services
continue to constitute the largest segment of India's service exports,
accounting for a share of over 40 percent of total service exports.
¨ Business and consulting services have also emerged as significant drivers of growth in exports.
¨ The government aims to secure a 10 percent share of the global services trade by 2047.
