India emerges as the ‘services factory’ of the world with a doubling of services exports, reaching $340 billion in 2023.
India’s services exports have surged, doubling in the past 18 years, according to a recent report by Goldman Sachs titled “India’s rise as the emerging services factory of the world.” The report forecasts that by 2030, India’s services exports could touch a staggering $800 billion.
Between 2005 and 2023, India saw significant growth in services exports from 2 percent to 4.6 percent, surpassing the growth rate of goods exports. Despite this promising trajectory, the report cautions against complacency. It highlights challenges such as resource strain in key export hubs like Bengaluru and the need for a skilled workforce.
The report also suggests that India should not overlook the impact of global factors such as changes in ICT spending and rising protectionism in destination countries, which could affect export prospects.
