Indian IT service: India’s software services exports grew 88.8% in FY 2021-22 : RBI
India’s exports of software services (excluding exports via commercial presence) are estimated to have increased by 17.2% to $156.7 billion in the financial year.
The RBI survey collects data on various aspects of IT services exports as well as exports of information technology enabled services (ITES) and business process outsourcing (BPO). For the 2021-22 cycle of the survey, 6,218 software exporting companies were contacted, of which 2,074 companies, including most large companies, responded. Respondents accounted for 89.4% of total software services exports during the year.
Computer services accounted for more than two-thirds of total software services exports. BPO services accounted for nearly 84% of information technology (IT) enabled services exports. LLCs accounted for 60% of total software services exports, while exports from joint-stock companies declined over the year.
Total exports of software services, including services provided by foreign affiliates of Indian firms, grew by 15.9% in 2021-22 and stood at US$171.9 billion; the local software business of foreign affiliates was $15.2 billion, with the United States being the main destination. The US share of foreign affiliate software activity accounted for 42.5% of total activity, followed by the UK at 23.5%.
The United States and Canada were the top destination for software exports with a 55.5% share, followed by Europe, nearly half of which was attributed to the United Kingdom, according to the report. In terms of service supply modes, the share of mode 1 (cross-border supply or offshoring) in India’s software services exports has further increased to 80.9% in 2021-22; the share of the other three modes of delivery (consumption abroad, commercial presence and presence of natural persons) has decreased.
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