What drives India’s robust services exports? RBI explains
RBI, in its latest bulletin for April, says to benefit from digitalisation and GenAI, a supportive policy and FDI measures are critical
RBI, in its latest bulletin for April, says to benefit from digitalisation and GenAI, a supportive policy and FDI measures are critical
The increase in export of services from India is expected to compensate for the decline in merchandise exports.
While India’s labour force participation rate (LFPR) has continued to increase over the last 5 years, it is important to look at the quality of jobs being created.
Services exports, which grew 26.79 % year on year to touch $ 322.72 billion in 2022-23 was the prime driver for Indian export performance the previous year too.
As the calendar year comes to a close, uncertainties continue to impact global trade, proving that the government’s assessment was correct – unpredictability is the norm.
The services exports surged 13.43% year-on-year to $28.70 billion during the month under review as against $25.30 billion in the same period last year
Exports as % of GDP have remained rangebound in recent years.
The S&P Global India Services PMI Index marginally falls to 60.1 in August from 62.3 in July.
The decline in exports was partially softened by the resilience shown in services exports
During the month under review, international sales, especially across Bangladesh, Nepal, Sri Lanka and the UAE, picked up pace leading to an upturn in total new orders.