Professional Services Emerge as Next Growth Engine for India: NITI Aayog

India’s services economy is entering a new phase of growth, with the focus shifting from expanding export volumes to capturing greater value from high-skilled, knowledge-intensive activities. Against this backdrop, NITI Aayog has turned the spotlight on the regulatory framework governing professional services, examining how reforms and international best practices could help Indian professionals and firms expand globally, generate skilled employment and strengthen the country’s position in the world services market.

NITI Aayog Vice Chairman Ashok Kumar Lahiri launched the third report under the Services Thematic Series, “India’s Services Sector: Insights on Regulatory Regime in Professional Services,” on August 10 at the forum of the High-Powered Education to Employment and Enterprise Standing Committee. NITI Aayog CEO Nidhi Chhibber and Saurabh Garg, Secretary, Ministry of Statistics and Programme Implementation, were also present. The launch was attended by senior government officials, state representatives, industry associations, experts and academia.

The report assesses India’s professional-services regulatory framework and benchmarks it against selected foreign jurisdictions. Based on stakeholder consultations, it identifies regulatory challenges and outlines a pathway to unlock the sector’s potential. Professional services account for nearly one-fourth of India’s services exports, making regulation crucial to future competitiveness.

India’s wider services trade provides the backdrop. Exports rose from $206.09 billion in FY2020–21 to $254.53 billion in FY2021–22, $325.33 billion in FY2022–23, $341.06 billion in FY2023–24 and $387.55 billion in FY2024–25. For FY2025–26, exports were estimated at $418.31 billion, against imports of $204.42 billion, producing a $213.89-billion surplus.

Professional and management consulting is emerging as a major growth engine. Its share of services exports increased from 10.5% in FY2016–20 to 18.3% in FY2023–25, while the segment grew at an average 25.9%. India’s share of global services exports has also risen from around 2% in 2005 to 4.3% in 2024, making it the world’s seventh-largest services exporter.

NITI Aayog proposes a four-pronged strategy: harness emerging trends, elevate professional services within the value chain, adopt international best practices and ensure continuous professional development.

The opportunity extends to investment and employment. Services accounted for 80.2% of India’s FDI during FY2023–FY2025, while the sector represents nearly 30% of employment and has added around 40 million jobs in six years. India’s GCC ecosystem also grew at about 7% CAGR between FY2020 and FY2025.

The report therefore signals a shift from services scale to sophistication. Better regulation could facilitate cross-border mobility, higher-value exports, entrepreneurship, FDI and skilled jobs, helping India build a globally competitive services sector as it advances towards Viksit Bharat @2047.