India’s services exports to surpass goods exports by FY30, says GTRI report

India’s services exports are expected to surpass merchandise exports by 2030, with projections of Rs. 4,82,797 crore (US$ 618.21 billion) in services exports compared to Rs. 4,81,849 crore (US$ 613.04 billion) in merchandise exports. The services sector has been growing rapidly, driven primarily by software and IT services, which accounted for 56.2% of total services exports in FY24, and other business services (OBS), such as legal, tax, and consulting services, which contributed 33.2%. The sector’s growth is supported by innovations in artificial intelligence, the Internet of Things, and digital transformation, which have boosted demand for India's IT expertise globally. OBS is also expected to experience strong growth due to rising demand for specialized services and integration with manufacturing processes.

While India dominates in IT and OBS, it remains underrepresented in other global service sectors like transport, travel, and financial services, which make up a significant portion of global services trade. In FY24, India's service exports grew to Rs. 2,80,425 crore (US$ 339.62 billion), while merchandise exports decreased to Rs. 3,61,250 crore (US$ 437.06 billion). To sustain growth in services exports, the Global Trade Research Initiative (GTRI) recommends diversifying IT exports beyond the US, expanding OBS into non-Gulf markets, and increasing participation in underrepresented sectors. With the right policies and investments, India’s services sector can significantly contribute to the country’s economic growth and enhance its global standing.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.