The year-end downturn in demand and geopolitical unrest caused turbulence in India’s exports, especially in the merchandise sector. But despite the strains on the global supply chain, the services industry is not only predicted to keep growing consistently but also to broaden its offers, particularly in the IT (Information Technology) space.
Although historically, North America and Europe have made up the bulk of India’s importers of IT services, experts note that interest and potential have also come from Asia, Africa, and Latin America.
The co-founder of the Foundation for Economic Development, Rahul Ahluwalia, thinks that unless the supply chain issue starts to impede digital connection, services exports are unlikely to be significantly impacted by it.
Additionally, he asserts that we must to strive for expanding India’s exports of services.
For nearly twenty years, business process outsourcing (BPO) and software development accounted for the majority of India’s exports of IT services. However, the country’s demand for imports has increased significantly over the past ten years, as have services related to automation, artificial intelligence (AI), and cloud computing.
According to a PwC analysis, artificial intelligence might boost the world economy by up to $15.7 trillion by 2030. 16% of the global skill pool for AI is produced in India, according to a different Bain & Company analysis. The nation is among the top three tech talent marketplaces globally.
More research should be done on quasi-professional services like coaching and therapy as well as professional services like accountancy and law. AI, which will soon be able to do many of these functions, is one significant disruptive force to be aware of, according to Ahluwalia.
The constant expansion of services is driven by increased worldwide demand or a focus on high-growth services, according to Bhaskar Ganguli, Director and co-Founder of the SEO company Mass Software Solutions Pvt. Ltd., located in Kolkata. With strategic investments, exports should continue to rise.
Similar to Ahluwalia, Ganguli thinks that there is a great deal of room for expansion in digital services like data analytics and cloud computing.
According to an International Data Corporation (IDC) estimate, India’s total market for public cloud services is expected to grow to $17.8 billion by 2027. This represents a 23.4% CAGR increase from 2022 to 2027.
Indian companies can also stand out by specializing in specialty markets like healthcare, IT, fintech, and e-commerce services. Additionally, he states that fostering innovation and investing in workforce skill development for new technologies will be key differentiators for India’s service exports to keep its position in the world market.
