Strong growth in services exports of 11 per cent in the first half, reaching 85% in a decade compared to goods
New Delhi| Services exports have grown at a strong rate of 11 per cent during the first half of the current financial year, that is, April-September. During this period, the growth of commodity exports has been only 0.1 per cent. Services exports have reached 85 per cent of exports of goods. According to the Center for Monitoring in Indian Economy (CMIE), services exports increased to $182 billion in the first half of 2024-25, up from $163.9 billion in the same period of 2023-24. Between 2011-12 and 2023-24, commodity exports have grown at three per cent and services exports at 7.6 per cent in dollar terms.
Exports of goods ahead of service in GDP ratio
Services exports have grown to 10 per cent of gross domestic product (GDP). Goods exports exceed 12 per cent. The recent significant growth in services exports is mainly driven by the dominance of computer services exports (especially software services) and growth in the category of other business services. Exports from transport and travel sectors have also contributed to the growth.
Half of the contribution of software
Software exports account for about half of total services exports. According to the Reserve Bank of India (RBI) annual survey, the US has become the major destination for exporting software services in 2023-24. It contributes to more than half of India’s software services exports.
