India’s Micro, Small, and Medium Enterprises (MSMEs), particularly in the Information Technology (IT) sector, are poised to play a pivotal role in achieving the ambitious target of Rs. 38,84,400 crore (US$ 450 billion) in services exports by FY26, according to Union Minister of Commerce and Industry, Mr. Piyush Goyal. Speaking at Global Confluence 2025, organised by the National Association of Software and Service Companies (Nasscom) in New Delhi, Mr. Goyal highlighted the growing contribution of MSMEs in sectors such as IT, tourism, business accounting, and financial services, which are driving India’s export growth and job creation.

Rising Contribution of MSMEs in Services Exports

In FY24, India’s services exports stood at approximately Rs. 29,34,880 crore (US$ 340 billion), with IT and IT-enabled services (ITES) contributing around Rs. 17,26,400 crore (US$ 200 billion). Mr. Goyal expressed optimism that services exports for FY25 would reach between Rs. 32,80,160 crore (US$ 380 billion) and Rs. 33,23,320 crore (US$ 385 billion), reinforcing India’s global standing as a leader in technology and business services.

The Minister emphasised that MSMEs in the IT sector are not only boosting services exports but also fostering employment generation and innovation. Their role in IT, ITES, financial services, and tourism has been critical in maintaining India’s competitiveness in global markets and driving economic transformation.

Role of Nasscom in Promoting Innovation

Commending Nasscom for its efforts in fostering continuous learning and innovation, Mr. Goyal highlighted the need for adapting to global trends to maintain India’s competitive edge. He underscored the importance of Global Capability Centres (GCCs) in leveraging India’s skilled workforce rather than relocating talent abroad. GCCs are increasingly recognising India’s cost advantages, technical expertise, and innovative ecosystem, making the country a preferred destination for setting up global operations and outsourcing hubs.

Virtuous Cycle of IT-Led Growth

Mr. Goyal pointed out that India’s IT-led growth has created a “virtuous cycle of growth”, contributing to rising demand for commercial real estate, housing, and infrastructure. The rapid expansion of the IT sector has led to an increased need for office space and residential developments, fueling economic activity across multiple sectors. This interlinked growth is driving India’s transformation towards a developed economy, with MSMEs playing a central role in this progress.

Government’s Commitment to Global Partnerships

Highlighting the government’s focus on expanding global partnerships through Free Trade Agreements (FTAs) and bilateral engagements, Mr. Goyal noted that global markets are eager for India’s increased presence. India’s robust services sector, supported by MSMEs and a growing IT ecosystem, positions the country to expand its footprint in international markets. The government is actively pursuing strategic partnerships to facilitate market access and create new opportunities for Indian exporters.

Free Trade Agreements to Enhance Global Competitiveness

Mr. Goyal stressed that FTAs and bilateral agreements will not only boost India’s exports but also create an enabling environment for innovation and technology transfer. The government’s proactive engagement in securing favourable trade agreements is expected to enhance India’s global competitiveness and create new market opportunities for Indian businesses.

India’s MSMEs as Key Drivers of Viksit Bharat

As India moves towards “Viksit Bharat” (Developed India) during Amrit Kaal, Mr. Goyal reiterated his confidence in MSMEs and the IT sector as the key drivers of economic transformation. MSMEs have consistently demonstrated their resilience and adaptability, contributing to India’s growth trajectory by providing technological solutions, financial services, and tourism expertise to global markets. Their role in enhancing India’s global standing and driving inclusive growth will be critical in the journey toward a developed and prosperous nation.

Growth of Global Capability Centres (GCCs) in India

The rise of Global Capability Centres (GCCs) in India is a testament to the country’s skilled workforce and IT expertise. As companies establish their operational hubs in India, they contribute significantly to export growth, employment, and knowledge transfer. Mr. Goyal urged stakeholders to focus on attracting more GCCs to India by offering world-class infrastructure, talent, and policy support.

Infrastructure and Real Estate Growth Driven by IT

India’s IT-led growth has triggered an unprecedented demand for commercial real estate, housing, and infrastructure. As businesses expand their operations, the need for modern office spaces, residential developments, and supporting infrastructure has created a multiplier effect on the economy. This growth, coupled with the expansion of digital services, is driving India’s transition to a knowledge-based economy.

Future Outlook for India’s Services Exports

With the services export target of Rs. 38.84 lakh crore (US$ 450 billion) by FY26, India is well on its way to strengthening its global leadership in technology and services. The continued growth of MSMEs, combined with government support and global partnerships, will position India as a leading player in the global services market. Nasscom’s commitment to promoting innovation and government initiatives to attract GCCs will further accelerate India’s digital transformation.

Conclusion

India’s MSMEs in the IT sector are poised to play a transformative role in achieving the country’s ambitious target of Rs. 38.84 lakh crore (US$ 450 billion) in services exports by FY26. Through their contributions in IT, financial services, and tourism, MSMEs are driving employment, innovation, and economic growth. The government’s focus on global partnerships, FTAs, and bilateral engagements is expected to further enhance India’s competitiveness and create new opportunities for Indian businesses. As India’s IT ecosystem continues to thrive, MSMEs will remain at the forefront of the country’s journey toward a developed and prosperous Viksit Bharat

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