India’s services exports rise record 27% in FY23, shows RBI data

The Reserve Bank of India (RBI) released data showing that India’s services exports surged by 26.6% in the 2022-23 fiscal year to $322 billion. This brought services exports closer to merchandise exports, which only grew 6% to $447 billion in the same period. However, services imports also increased by 22.2% to $179.7 billion, resulting in a services trade surplus of $142.5 billion. India’s services exports cover a range of industries, including information technology, transportation, travel, construction, insurance, financial services, telecommunications, and personal, cultural, and recreational services. In addition to software exports, “other business services” exports, such as legal and management consulting services, have significantly increased in recent years. Experts warn that global headwinds may negatively impact services exports in FY24. The Indian government has set a target of achieving $2 trillion in combined exports of goods and services by 2030. According to World Trade Organization data for 2021, India has a 4% share in global commercial services exports and a 3.52% share in international commercial services imports, while its share in world exports and imports of merchandise trade is 1.77% 2.54%, respectively.