India’s Share in Global Services Exports Rises by 4.6% since 2005: A Surge in Exports

Over the last 18 years, India’s service exports have witnessed an impressive growth rate, surging by sixfold on average. Consequently, India’s share in global services exports has escalated to 4.6%, significantly impacting the nation’s economic development and job creation.

Goldman Sachs predicts that India’s service exports will increase annually by 12.4% in 2024 and the forthcoming years. According to a report by an American investment banking company, India’s service exports are expected to reach up to ₹75 trillion annually by 2030. 

The country’s service exports crossed ₹28 trillion in 2023, contributing to approximately 9.7% of the Gross Domestic Product (GDP). The most significant factor driving growth in India’s service exports in the coming years is anticipated to be emerging global capacity centers (GCC), as assessed favorably for India’s economy by Goldman Sachs.

Analysts attribute the continuous rise in exports to the strengthening manufacturing sector within India. The country’s exporters benefit from support in the foreign exchange market. Although the economic conditions of many global economies are currently fragile, it is anticipated that in the future, global economic growth will bolster the country’s exports, despite the ongoing economic instability in several major economies worldwide.

Rapid Growth in Services Exports Noted

Between 2005 and 2023, the country’s service exports surged from ₹4.4 trillion to ₹28 trillion, marking a sixfold increase. 

Over the last 18 years, India’s annual service exports have grown at a rapid pace of 5.5%, whereas global service export growth has remained at around half of this rate. 

India’s share in global service exports has risen from a mere 2% in 2005 to 4.6% in 2023. Furthermore, over the last 18 years, India’s share in the total global exports of goods and services has increased from 1% to 1.8%.

Computer Services Constitute Over 50% of Total Services Exports

According to reports, computer services account for over 50% of India’s total service exports. However, recent years have witnessed an increase in the contribution of various other services. For instance, between 2005 and 2023, the export of professional consulting services surged from 11% to 18.3%. 

This growth was largely driven by the expansion of GCC operations in India. Over the past decade, the JCC (Job Creating Contracts) has seen a significant rise, creating 1.7 million jobs. Currently, there are approximately 1,580 JCCs in India, as per the report.