India It is ready for a major change in its export trends and by the year 2030, service sector exports are expected to overtake goods exports and reach $618 billion. Research institute Global Trade Research Initiative (GTRI) said this on Wednesday. Between fiscal years 2018-19 and 2023-24, the country's merchandise exports are expected to grow at a compound annual rate (CAGR) of 5.8 percent. Whereas the growth rate of service exports has been 10.5 percent. “At this rate, services exports are likely to reach $618.21 billion by FY 2029-30, overtaking goods exports,” GTRI said. Goods exports at that time are estimated to be $613.04 billion.”
Highest growth in these categories
It said most of the growth in India's services sector comes from two categories – software and information technology (IT) services, and other business services (OBS). In the last financial year, they contributed 86.4 percent to the total exports. OBS covers areas such as legal, accounting, tax consulting, management consulting and market research. GTRI founder Ajay Srivastava said OBS exports worth $102.8 billion in 2023-24, which is 33.2 percent of total services exports.
56.2% share in total services exports
It said these industries take advantage of the country's highly skilled workforce and its growing IT infrastructure. Grouped under the broad category of 'telecommunication, computer and information services', software and IT services contributed $190.7 billion to India's exports in 2023-24. This segment accounts for 56.2 percent of total services exports.
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