Chennai: Services export value was higher than merchandise exports in November, for the first time on a monthly basis.
Merchandise exports were down 4.83 per cent to $32.11 billion in November while services exports grew 27 per cent to $35.67 billion.
Though services exports grew 21 per cent in October 2024 at $34.02 billion, merchandise exports were higher at $39.2 billion.
“This should not surprise anyone. Higher services growth has been a consistent trend and is now resulting in higher export values,” said Ajay Srivastava, founder of GTRI.
Between FY2019 and FY2024, India’s merchandise exports grew at a compound annual growth rate (CAGR) of 5.8 per cent, while services exports surged ahead at a robust CAGR of 10.5 per cent.
At this rate, by FY2030, services exports are expected to reach $618.21 billion, edging past merchandise exports, which are projected at $613.04 billion.
Other Business Services, which include legal, accounting, tax consultancy, management consulting, and market research, generated $102.8 billion in FY2024, representing 33.2 per cent of total services exports. OBS is poised to outpace software services exports by 2030 driven by rising global demand for specialized services and the integration of services into manufacturing. Globally, OBS trade is more than twice the size of the IT sector at $1.8 trillion in 2023 against $762 billion valued software and IT services.
