Summary :

According to Axis Mutual Fund’s “Scaling New Heights” report, India’s services sector—which rose from 40% of GDP in the early 1990s to 55% in FY25—is central to the Rs 4,28,35,000 cr (US$ 5 trillion) economy goal, growing 8.3% p.a. between FY23–FY25 through digitalisation, rising incomes and urbanisation across IT, financial services, healthcare, telecom and e-commerce. IT services are set to grow 4– 6% in FY26 on AI and cloud; financial services saw mutual-fund assets climb at a 20%+ CAGR over the past decade; healthcare surged 62% YoY in March 2025; e-commerce is projected to jump from Rs 8,82,401 cr (US$ 103 b) in 2024 to Rs 27,84,275 cr (US$ 325 b) by 2030; and the sector drew 19% of FDI in FY25. Key investment avenues include sector-specific mutual funds, stocks in IT, banking, telecom and healthcare, plus high-growth areas like fintech, medtech and premium services.

Source: IBEF

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