March 22, 2022
Although service exports contracted during the pandemic, the fall was arrested by increased digitisation and hybrid modes of working
Information technology (IT) and information technology-enabled services (ITES) remain one of the top service exports
As per the Reserve Bank of India, export of software services exports increased by 2.1% to reach US$ 148.3 billion in 2020-21
Consultancy services, audiovisual and gaming (AVCG), travel and tourism, logistics services, and financial services contributed to the growth of the service export bucket
Growing demand for services in sectors such as medicine, law, and gaming and an uptick in the tourism industry is anticipated to boost the country’s services export revenue to reach US$ 1 trillion by 2027 – three years ahead of estimates, as per the Services Export Promotion Council (SEPC). Merchandise exports are also expected to reach the US$1 trillion target by FY27. However, industry experts believe that the target is ambitious and would require boosts, enhanced trade agreements, and government incentives across various services sectors. Service exports contribute to 40% of India’s total exports and have been growing faster than merchandise exports.
Although service exports contracted during the pandemic, the fall was arrested by increased digitisation and hybrid modes of working. IT and ITES remain one of the top service exports from the country accounting for almost 50% of the total services exports. As per the Reserve Bank of India, the export of software services exports increased by 2.1% to reach US$ 148.3 billion in 2020-21. Apart from this, consultancy services, AVCG, travel and tourism, logistics services, other business, and financial services – especially fintech contributed to the growth of the service export bucket.
