India's economy has been resilient in the face of the ongoing pandemic, with the country's services sector driving growth. India's services exports have been growing at a rapid pace, reaching a record high of $220 billion in the financial year 2020-21. This is a significant achievement, considering that services exports account for over 45% of India's total exports.
India's rising service exports may protect the economy A spike in India's services exports, which reached a record high in the October-December quarter, is projected to protect the economy from external dangers, as the global economy slows, putting pressure on the country's merchandise exports. According to analysts and economists, service exports are no longer driven solely by IT services, but also by more lucrative products like consulting and R&D. According to Export import data India, issued by the Reserve Bank of India (RBI) on Friday, India's services exports increased 24.5% year on year in October-December 2022, reaching a record $83.4 billion during the quarter. The services surplus, which excludes any imports, rise 39.21% to a record $38.7 billion. This, combined with a decrease in the merchandise trade deficit, resulted in a smaller-than-expected current account deficit of $18.2 billion, or 2.2% of GDP. We anticipate that services exports would exceed $375 billion by March 2024, up from $320-350 billion in the fiscal year ending March 2023," said Sunil Talati, head of the Services Export Promotion Council. He predicts that by March 2025, service exports will have surpassed goods exports. According to the most recent Export Import data, October-December merchandise exports totalled $105.6 billion. Growth in Service Exports The growth in services exports can be attributed to various factors, including the country's skilled workforce, cost competitiveness, and a favourable policy environment. Additionally, the ongoing pandemic has accelerated the adoption of digital technologies, which has further boosted the growth of India's services sector. India's services exports are spread across various sectors, including IT and IT-enabled services, business process outsourcing, engineering services, healthcare, and education. The IT and IT-enabled services sector is the largest contributor to India's services exports, accounting for over 40% of the total exports. India's services exports are expected to continue growing in the coming years, driven by rising demand from developed countries. According to an Export import data India, India's services exports are projected to grow at a CAGR of 8.5% between 2021 and 2026, reaching $350 billion by 2025-26. The growth in services exports is a positive development for India's economy, as it can help shield the country from external risks. For instance, the ongoing pandemic has disrupted global trade, leading to a decline in demand for goods and services. However, India's services exports have remained resilient, providing a much-needed cushion to the economy. Moreover, the growth in services exports can help reduce India's dependence on traditional export sectors such as textiles and leather, which are vulnerable to external shocks. This diversification of India's export basket can help make the country's economy more resilient and sustainable in the long run. In conclusion, India's surging services exports are a significant development that bodes well for the country's economy. The growth in services exports can help shield the economy from external risks and make it more resilient in the long run. As such, policymakers should continue to support the growth of the services sector, which has emerged as a key driver of India's economic growth. So, if you have any query related to export import data India, connect with Seair Exim Solutions to explore the international market in the right way. For free sample data reports and free live demo data search Contact no.: 9990837766 Email: [email protected] Website: www.seair.co.in
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