Buoyed by a significant jump in exports during 2022–23, the Services Export Promotion Council (SEPC), on Wednesday, said the healthy growth trend will continue and shipments are expected to reach up to $400 billion this fiscal.
During 2022–23, the country's services exports rose by 42% to $322.72 billion from $254 billion in 2021–22, according to provisional data from the commerce ministry.
"The services sector had targeted $300 billion but accomplished $322 billion. Subject to the final data, we might touch $350 billion in 2022–23, and based on the current trend and the continuing growth, our estimate is around $375 billion to $400 billion for 2023–24," SEPC Chairman Sunil H. Talati told PTI.
Sectors that contributed to the services exports growth during the last fiscal include travel, transportation, medical, and hospitality, he said. He added that the council has been working tirelessly in collaboration with the government to catapult services sector growth with business delegations, B2B meetings, and market-specific initiatives.
"The export of IT and IT-enabled services is going strong and is highly likely to maintain the growth momentum. The travel sector is catching up soon. The post-pandemic economic recovery has created increasing demand for goods and services from foreign markets; the stabilisation of freight charges and the normalisation of supply chains are positive developments for the transport sector," he said.
Business services such as engineering, architecture, legal, and accounting services, as well as research and management consulting services, stand to benefit from leveraging the opportunities presented by the government initiatives.
He also said that, as for the key export destinations, India's service exports have historically been concentrated in North America and Europe, but there is also 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," the chairman said.
Talati said that certain incentives are necessary to further push the growth rates.
"For example, gaming and entertainment can perform very well with the right aid from the government. This can help them be more competitive in price and delivery and tap into international markets. So the government can think of providing incentives for growth. There are various service silos in the services sector. These key steps can help exports reach a wider global audience," he added.
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