Introduction
The services sector in India is the largest contributor to the country’s economy. It accounts for over 50% of the GDP of India. The services sector in India comprises trade, tourism, communication and storage, financing, insurance, real estate, business services, software services, IT-BPM, etc. The growth of the sector in the first half of 2020-21 was 10.8%.
India is the fifth-largest recipient of FDI inflows with the services sector being the highest FDI recipient. During the first half of 2021-22, the sector’s FDI inflows were US$ 16.73 billion; accounting for 54% of the country’s total FDI inflows. The IT industry accounts for about 8% of India’s GDP and has a share of more than 52% global outsourcing market.
Export Trend
While India exports various types of services, India exports various types of services namely, travel, transportation, insurance, software – IT-BPM, business services, financial services and communication. The total export of services from India in 2020-21 was US$ 206 billion, which reached the targeted US$ 250 billion in 2021-22 and is expected to reach US$ 325 billion by 2022-23.
The IT-BPM is the largest exported service out of India accounting for more than 45% of the total service exports. Between April-December 2021, India’s services exports increased by 18.4% to US$ 177.7 billion driven by IT exports. Business and transportation services are also among the top exported services out of India comprising of about 23% and 11% of the total services exports respectively.
The IT-ITes exports from 2016-17 to April-December 2021 have grown at a CAGR of 8.7%.
Export Destinations
The US, UK and Japan are the largest importers of Indian services. For the software services or the IT sector the US, the UK and the EU are the top importers accounting for 62%, 17% and 11% of the total IT-ITes exports respectively.
Some of the other importers of services from India are Asia Pacific, Latin America and Middle East Asia.
Government Body
Service Export Promotion Council (SEPC)
The SEPC was set up by the Ministry of Commerce and Industry. It is the apex body for the trade-related activities of services sectors. It acts as an advisory to the government of India in terms of regulations and policy and acts as a liaison between the industry and the government. It also works towards trade intelligence generation, export development of services industries, promotion and enabling business environment.
Ministry of Electronics and Information Technology (MeitY)
The MeitY is an apex agency of the Union Government of India. The objective of the ministry is to provide e-infrastructure to the government, promotion of electronics hardware and IT-ITes industry, implement an R&D framework, and provide support to e-Skills and knowledge networks. The functions of MeitY are the promotion of digital transactions and payments, promotion of IT education, handling cyber law matters, undertaking development initiatives, etc.
SERVICES EXPORT PROMOTION COUNCIL
Head Office: DPT – 417, 4th Floor, Prime Towers,
Plot No. 79 & 80, Pocket – F,
Okhla Industrial Area Phase – I,
New Delhi-110020
India
Tel.:+91-11-43562656
Email: info@servicesepc.org
Website: http://servicesepc.org
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