India’s services exports to reach $800Bn by 2030
NEW DELHI, INDIA — Investment banking company Goldman Sachs projected a significant increase in India’s services exports, estimating a rise to $800 billion by 2030 from $340 billion in 2023.
This growth is expected to boost the external sector, stabilize the rupee, and increase India’s GDP contribution from services exports to approximately 11%.
Stable economic projections amid global challenges
The report, titled India’s Rise as the Emerging Services Factory of the World, suggests that the current account deficit will average around 1.1% of GDP from 2024 to 2030, maintaining stability despite potential global economic challenges.
These include geopolitical tensions in West Asia and fluctuating agricultural exports to Iran.
Driving forces behind the export boom
Over the past 18 years, India’s global services export share has more than doubled, thanks in part to the development of global capability centers (GCCs).
These centers have been crucial in the rapid growth of high-value services, which in turn stimulates demand for luxury spending and real estate within India.
The computer services sector, which nearly constitutes half of India’s total services exports, alongside professional consulting, has seen the fastest growth.
This sector’s expansion is largely driven by GCCs, which have seen revenue quadruple over 13 years to $46 billion in FY23, employing 1.7 million people.
Future outlook and global impact
The report also highlights the correlation between service exports and various economic factors such as global demand, competitive exchange rates, and the quality of infrastructure and human capital.
It underscores the potential for sustained growth in high-value services, which is expected to drive further domestic and international economic activity in India in the next years.
