Key Details
CII’s August 2026 paper, AI Impact on Services Trade and Impact of Services Trade Policies on AI: Indian Perspective & Experience, draws on consultations with industry, academia and government in Delhi, Mumbai, Hyderabad and Bengaluru, alongside published research.
India’s exposure: The paper reports US$322.63 billion in digitally delivered services exports in 2025, nearly 78% of services exports. These are services delivered through computer networks, not a measure of AI-generated exports.
Business change: CII anticipates greater emphasis on specialised capabilities and payment for results as AI automates routine work.
Policy direction: Recommendations cover workforce development, international market access, trusted data flows and a proposed AI Adoption Mission for MSMEs.
AI changes what clients buy from Indian firms
CII sees international clients increasingly seeking sector expertise, specialised platforms and measurable business outcomes. AI-assisted coding, testing and customer support could shift pricing away from staff deployed towards results delivered. Opportunities extend to engineering, financial analytics, remote healthcare and digital content, broadening the scope of India’s services exports.
GCCs create a market for specialised Indian services
Global Capability Centres (GCCs)—multinationals’ own overseas operations—are moving into research, product engineering and AI. The paper reports more than 2,100 GCCs in India. Their expansion creates demand for Indian providers of AI implementation, governance and cloud modernisation, linking multinational investment with opportunities for domestic services firms.
Entry-level work faces a different transition
The paper describes smaller AI-assisted teams undertaking tasks previously assigned to larger junior teams. Remaining roles increasingly require judgement, contextual understanding and problem-solving. CII recommends mentorship, practical projects and employer–academic collaboration to prepare workers for this change, alongside continued technical reskilling.
Services trade supplies AI as well as benefiting from it
Cloud computing, software, data services and cross-border research are inputs into AI development. Their availability affects what Indian firms can build and sell internationally. CII consequently links domestic AI capabilities with more specific trade commitments:
Mode 1 market access: services supplied remotely across borders.
Mode 4 commitments: temporary movement of technology professionals and AI specialists.
Social-security agreements and totalisation arrangements: reducing duplicate contribution burdens for internationally mobile professionals.
It also calls for compatible AI standards and predictable data-transfer conditions, while recognising privacy, security and consumer-protection objectives.
Policy Relevance
The paper places export competitiveness and workforce adjustment within the same policy agenda. Productivity gains alone do not establish whether firms secure higher-value contracts or workers progress into better roles.
Preserving routes into skilled work: As routine assignments contract, training and employment programmes face a harder task than teaching AI tools. Placement, progression and access to supervised work would help assess whether initiatives such as FutureSkills PRIME support the transition.
Extending participation beyond large firms: CII’s proposed AI Adoption Mission for MSMEs addresses the risk that smaller businesses lack the computing access, implementation expertise and finance to compete. Its value would depend on sustained business adoption and market access.
Making trade commitments usable: Commerce and technology policymakers will need to connect market-access negotiations with workable data safeguards and compliance requirements. The relevant test is whether firms can serve overseas clients predictably while protecting personal data and intellectual property.
Relevant Question for Policy Stakeholders: How can India’s export-support and skilling programmes help firms secure higher-value AI services contracts while maintaining entry routes for new workers?
Follow the Full Policy Paper Here: CII Policy Paper: AI impact on Services Trade and Impact of Services Trade Policies on AI