India has once again left China in the dust and is leading the race to become the world’s third largest economy. This time, India has surpassed China in services exports.
According to a UNCTAD report, despite global economic uncertainties, India’s services exports jumped 11.4 per cent to $345 billion in 2023, while China’s shipments from the sector contracted by 10.1 per cent to $381 billion.
Which sectors contributed to India’s services export growth?
Sectors that contributed to India’s services export growth include travel, transport, medical and hospitality.
In its quarterly bulletin, UNCTAD said with an 8.9 per cent annual rise in current dollar value terms, the world services exports surpassed USD 7.9 trillion in 2023.
The leading exporters among developing economies include India, China, Singapore, Turkiye, Thailand, Mexico, and Saudi Arabia, it added.
Last year, India’s services imports dipped marginally by 0.4 per cent to USD 248 billion.
“The main driver of the YoY (year-on-year) rise of services exports in Q4 2023 was the ample growth of international travel receipts. In the post-COVID-19 recovery, travel receipts increased by 70 per cent in Asia (YoY),” the report said.
A report by PTI mentioned an industry expert saying the export of IT and IT-enabled services and travel is going strong.
Business services including engineering, architecture, legal and accounting services and research and management consulting services stand to benefit from leveraging the opportunities presented by the government initiatives.
India’s service exports have historically been concentrated in North America and Europe, but there has also been a significant potential for growth in emerging markets, such as Asia, Africa, and Latin America.
“Diversification of export destinations by Indian exporters can help cut dependence on traditional markets and open up new opportunities for the sector,” the report quoted the expert as saying.
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