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Outbound shipments of services sectors likely to overtake merchandise exports by 2030: GTRI
Nov-21-2024

The Global Trade Research Initiative (GTRI) has said that India is set for a major change in its export trends, with outbound shipments of the services sectors expected to overtake merchandise exports by 2030 and touch $618 billion. It said between 2018-19 and 2023-24, the country's merchandise exports grew at a compound annual growth rate (CAGR) of 5.8 per cent, while services exports surged ahead at a robust CAGR of 10.5 per cent.

GTRI said at this rate, by FY2030, services exports are expected to reach $618.21 billion, edging past merchandise exports, which are projected at $613.04 billion. It noted that most growth in India's services sector comes from two categories -- software & IT services, and Other Business Services (OBS). Together they accounted for 86.4 per cent of total exports in the last fiscal year. It added that OBS, encompassing areas such as legal, accounting, tax consultancy, management consulting, and market research, generated $102.8 billion in 2023-24, representing 33.2 per cent of the total services exports. These industries leverage the country's highly skilled workforce and its burgeoning IT infrastructure, solidifying the nation's reputation as a global services powerhouse.

It stated that software and IT services, grouped under the broader category of 'telecommunications, computer, and information services' contributed $190.7 billion to India's exports in 2023-24. This segment represents 56.2 per cent of the total services exports, with about 80 per cent of these delivered digitally. Emerging technologies like generative AI, machine learning, and the Internet of Things are expanding opportunities for Indian firms, driving innovation and global demand for Indian expertise.


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