44% increase in software services exports by owner companies/LLPs in FY22 compared to the previous year: RBI survey

Trade, import and export for MSMEs: India’s software services exports in FY 2021-22 by Proprietary Companies/Limited Liability Companies (LLPs) amounted to Rs 32,181 crore, up 44.5% from Rs 22,265 crore in FY21, according to the annual software services export survey released by the Reserve Bank of India (RBI) on Thursday. Owners/LLPs, which are typically MSMEs, accounted for 2.8% of total software services exports worth Rs 11,67,404 crore in FY22, compared to 2.2% of exports in FY9 Rs 92,141 Crore in FY21.

As for private and public joint-stock companies, while private companies accounted for 60 percent of total software services exports, joint-stock company exports declined over the year, according to the data. Private enterprise exports increased to Rs 6,99,890 crore in FY22 from Rs 5,25,194 crore in FY21 while SOE exports fell to Rs 4,35,333 crore in FY22 from Rs 4,44,682 crore the previous year.

Among the categories, exports of IT services increased from Rs 6,88,444 crore to Rs 7,57,352 crore, followed by exports of BPO services increasing from Rs 2,71,743 crore to Rs 3,14,851 crore during the said period. Engineering services exports also increased from Rs 54,957 crore to Rs 61,561 crore and software product development exports increased from Rs 28,177 crore to Rs 33,640 crore, according to the survey data. RBI said 6,218 software export companies were contacted for the survey, of which 2,074 responded. Respondents accounted for 89.4 percent of total software services exports during the year.

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Meanwhile, India’s MSME sector’s share of the country’s annual merchandise exports in FY22 declined even as the latter hit an all-time high. According to data shared by Minister of State for MSMEs Bhanu Pratap Singh Verma at the Rajya Sabha in July this year, the share of MSME exports fell to 45.04% in FY22 from 49.75 % in FY20 and 49.35% in FY21. While India’s exports jumped 34.63% from $313.3 billion in FY21. FY20 and 44.5% from $291.8 billion in FY21 to a record high of $421.8 billion in FY22.

However, MSME exports jumped 21.8% from $155.9 billion in FY20 and 31.9% from $143.9 billion in FY20. 21 to $190 billion in FY22. Among the top 10 export destinations for Indian MSMEs in FY22 are the United States ($54.7 billion), the United Arab Emirates ($13.4 billion), Hong Kong ($9.93 billion), United Kingdom ($7.54 billion), Germany ($7.19 billion), China (5, $16 billion). ), Belgium ($4.73 billion), France ($4.20 billion), the Netherlands ($4.24 billion) and Italy ($3.84 billion).

Also Read: Exclusive: No Further Extension of Udyog Aadhaar License Validity for MSMEs by Government

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