India’s services exports are projected to outpace goods shipments, reflecting a major shift in trade patterns.
Services exports in November are provisionally estimated at $35.7 billion, surpassing merchandise exports of $32.1 billion, according to data released by the commerce department on Monday. This marks a significant milestone for India’s trade sector, showcasing the steady growth of services despite global economic challenges.
Commerce Secretary Sunil Barthwal highlighted the trend, projecting services exports to touch $1 trillion in the coming years. Software remains dominant, contributing 47 percent of services exports, with nearly 70 percent directed to the US. However, the government aims for a balanced strategy, focusing on six key areas: IT and IT-enabled services, business services, maritime, tourism, audio-visual, gaming, and digitally delivered health and education.
While global conflicts and inflation have impacted goods trade, services growth has been fueled by Global Capability Centres (GCCs), legal, management, and accounting services. Analysts suggest this trend will persist, with services exports projected to hit $618.2 billion by 2029-30, outpacing merchandise exports.
