Indian services industry expected to expand its share of GDP from ~55% currently to nearly 60% by 2035: OmniScience Capital
OmniScience Capital has released its report on Indian Service sector titled “Advantage Services India: 6 - 3 ($Tn)_Match-point 2035 – Serving India & The World” The report highlights the growing dominance of India’s services sector as the country progresses toward becoming a $10 trillion economy by 2035, with services expected to expand their share of GDP from ~55% currently to nearly 60%, translating into a ~$6 trillion economic opportunity. Currently, the services sector contributes around ~$2.2 trillion to India’s GDP and is projected to reach ~$6 trillion by 2035, implying a CAGR of ~10.6%.
The report notes that the services ecosystem continues to demonstrate strong structural momentum. India’s Services PMI has shifted to a higher expansionary range, rising from roughly 50–55 between 2015–2020 to about 55–60 in recent years, indicating stronger and sustained growth in service activity.
At the global level, India has also emerged as a significant player in services trade. India’s share in global services exports has increased from 1.9% in 2005 to 4.3% in 2023.
The report highlights that the services sector remains the largest and fastest-growing component of India’s Gross Value Added, delivering a 10-year CAGR of over 10% and 3-yr CAGR of 13.5%, higher than other economic segments.
Within the sector, financial, real estate and business services have emerged as the fastest-growing segment, delivering a 10-year CAGR of 11.3% and a strong 14.0% growth over the past 3-yrs. Similarly, public administration, defence and other services that have maintained consistent double-digit growth, reflecting sustained government spending.
Key Growth Vectors: Banks funding India’s capex cycle (~Rs200 trillion corporate borrowing potential by 2030), Logistics scaling toward a ~$1 trillion opportunity by 2035, IT services retaining long-term structural strength despite near-term pressures, and Professional & commercial services benefiting from rising formalization and digitalization of business services.
India’s listed universe offers a broad and diversified opportunity set across services industries, with more than 470+ listed services companies above market-cap more than Rs 800 Cr with a combined market capitalization of nearly Rs197 trillion.
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