India’s services exports rise to record high in FY22
India’s services exports hit an all-time high in 2021-22, largely driven by software services and professional and management consulting services, although contact sectors like travel, leisure services and construction remained impacted due to the pandemic.
India’s services exports reached $254.5 billion in 2021-22, up 23.4% from $206.09 billion in 2020-21, according to data from the Reserve Bank of India. India.
Services exports surpassed the previous record high of $213 billion in 2019-20, according to the statement released by the Ministry of Trade and Industry on Wednesday.
In addition, services exports hit an all-time monthly high of $26.9 billion in March 2022, according to the statement.
Telecommunications, computer and information services, other business services and transport are the main contributors to services exports from April to December 2021 (latest data available). Services in terms of components, the statement said.
India’s overall exports, comprising both services and goods, hit a record high of $676.2 billion in the fiscal year 2021-2022, up 28.4% from $526.6 billion in 2020-21 and $497.9 billion in 2019-20, respectively.
Trade and Industry Minister Piyush Goyal said last month that India’s services sector had hit an all time high despite sectors like tourism, aviation and hospitality being badly hit by the Covid pandemic -19.
India is expected to make significant gains in the services export sector given the comprehensive trade agreements signed with the United Arab Emirates and Australia. It is also negotiating comprehensive free trade agreements with the European Union, United Kingdom, Canada and Israel.
India’s merchandise exports reached $421.8 billion in 2021-22, surpassing the target of $21 billion in 2021-22, growing by 44.6% and 34.6% from to 2020-21 and 2019-20, respectively.