- India's services exports rose by 42% to USD 322.72 billion in 2022-23 from USD 254 billion in 2021-22.
- The SEPC predicts that the growth trend will continue, and shipments are expected to reach up to USD 400 billion this fiscal year.
- Sectors that contributed to the services exports growth include travel, transport, medical, and hospitality, with the IT and IT-enabled services sectors also performing well. The council has been working with the government to promote growth and diversify export destinations. Incentives are necessary to further boost growth rates.
The Services Export Promotion Council (SEPC) has predicted that India's services exports will continue to experience healthy growth after a significant jump in 2022-23. According to provisional data from the commerce ministry, the country's services exports rose by 42% to USD 322.72 billion from USD 254 billion in 2021-22. This performance has exceeded the SEPC's target of USD 300 billion. The SEPC Chairman, Sunil H Talati, estimates that the trend will continue and expects shipments to reach up to USD 400 billion this fiscal year.
Various sectors contributed to the services exports growth during the last fiscal year, including travel, transport, medical, and hospitality. The IT and IT-enabled services sectors are also performing well and are likely to maintain their growth momentum. The post-pandemic economic recovery has increased the demand for goods and services from foreign markets, leading to a stabilization of freight charges and the normalization of supply chains, which is a positive development for the transport sector.
SEPC has been working tirelessly with the government to promote the growth of the services sector. The council has been organizing business delegations, B2B meetings, and market-specific initiatives. Business services such as engineering, architecture, legal and accounting services, as well as research and management consulting services, stand to benefit from the opportunities presented by the government initiatives.
Historically, India's service exports have been concentrated in North America and Europe, but there is significant potential for growth in emerging markets such as Asia, Africa, and Latin America. Diversification of export destinations can help reduce dependence on traditional markets and open up new opportunities for service exports.