New Delhi [India], India's services exports, in US dollar terms, grew at a strong compound annual growth rate (CAGR) of more than 14 percent over the last 30 years (between 1993 and 2022), leading to India's merchandise export growth. Much more than. (10.7 per cent) as well as world services export growth (6.8 per cent), according to an article in the monthly bulletin of the Reserve Bank of India (RBI), as a result of which India's share of services exports in world services exports increased by more than Rs. An eight-fold increase from 0.5 percent in 1993 to 4.3 percent in 2022. According to the central bank's April Bulletin article, India is today the world's 7th largest services exporter, an unprecedented rise from 24th place in 2001. India ranks 2nd in the world in exports of telecommunication, computer and information services, 6th in exports of personal cultural and recreational services, 8th in exports of other business services, 10th in exports of transport services and 14th in travel service exports.Strong growth and stability in services exports have strengthened India's balance of payments (BoP) by offsetting a significant portion of the economy's goods trade deficit. With the advent of digitalization and technological advancements, emerging market economies (EMEs), including India, have seen new opportunities for expansion. "Service inputs, whether imported or locally produced by foreign or domestically owned enterprises, are increasingly used in the production of manufactured products" to improve services exports and their participation in competitiveness in global value chains (GVCs). which are then exported, thus increasing service manufacturing exports," the article said. Global merchandise exports declined by 7.2 percent in 2020, but the decline in services exports was much sharper at 17.2 percent. In contrast, in the case of India, service exports remained resilient, primarily due to the large share in exports of telecommunication, computer and information services, which came from digitization and the government's Digita India initiative, which boosted service exports, especially It provides the necessary infrastructure for the development of information technology (IT) and IT-enabled services (ITES). “India's growing software and other business services exports through Global Capability Centers (GCCs) are a testament to its growing dominance in high-skilled and high-value services exports. The wave of big data, artificial intelligence
Advances in machine learning (ML), Internet of Things (IoT), compatible hardware, generative AI and spatial computing have opened up new vistas for Indian software exports, the article said.