According to a recent report on the Digital Economy in India, the country has solidified its position as a top global supplier, with continued growth through strong IT and IT-enabled services growth. The report indicates that the continued improvement in India’s share of global digital service sales will be fuelled by a growing number of e-commerce and IT solution providers. Software Development, E-Business, and e-Services are major contributors to export growth in India. The combination of India’s ability to provide high-quality, scalable, low-cost digital services has enabled India to maintain strong export activity while international merchandise trade remains volatile.
According to the report, continued support from the government, enhanced digital infrastructure, and a supportive ecosystem for technology companies have been key drivers of growth. The government's investment in building a digital public infrastructure, creating a skilled workforce, and supporting innovation has allowed Indian technology companies to advance their capabilities, develop new products, and enter additional advanced and emerging markets. The increase in exports of digital services also served to balance the negative impact of the slower growth in physical product exports, positively affecting the strength of India's external sector. Looking forward, continued investment in emerging technology, secure data, and regulatory certainty will be critical for companies to remain competitive. In conclusion, the continued growth of digital service exports demonstrates the increasing global importance of India in the global services market and provides reassurance of India’s strong medium term economic growth.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.