Stories
India Services Exports Slip in September Amid AI Growth Pressures and Global Slowdown
- •India's services exports fell 0.87 percent year-on-year to $36.35 billion in September 2026, breaking a record growth streak.
- •The Global Trade Research Institute points to weaker demand from the US and Europe, geopolitical conflicts, and shipping disruptions as major hurdles.
- •The rise of generative AI and automated workflows is reducing billable hours and shrinking contract sizes for traditional IT and BPO services.
- •Multinational firms are curbing spending and leveraging AI to boost productivity at their Global Capability Centres in India instead of expanding workforces.
Key Questions Answered
India's services exports fell 0.87% year-on-year to $36.35 billion in September 2026 due to the rising use of artificial intelligence, weaker demand from overseas clients in the US and Europe, and global trade disruptions.
Generative AI tools and automated workflows are reducing the number of billable hours and contract sizes for basic programming, software maintenance, and traditional BPO. Additionally, multinational companies are using AI to boost existing employee productivity rather than expanding their workforce at Global Capability Centres in India.
The United States, the European Union, and the United Kingdom account for the vast majority of India's services and software exports. Specifically, the US represents 54.1% of these software exports, while the EU accounts for 18.6% and the UK makes up 12.4%.
