Software services exports up 2.1% to $ 148.3 billion in 2020-21: RBI survey


Exports of software services, including services provided by foreign affiliates of Indian companies, grew 2.1% in 2020-21 and amounted to $ 148.3 billion, according to a survey by the Reserve bank released Monday.

The RBI has released data for the 2020-2021 cycle of its annual survey of software and computer services exports.

“India’s exports of software services (excluding exports through commercial presence) are estimated at USD 133.7 billion in 2020-2021, registering a growth of 4.0% over the previous year,” said said the RBI.

Foreign affiliates’ software exports through commercial presence, where the United States is a major destination, amounted to $ 14.6 billion in 2020-2021.

“Total exports of software services, including services provided by foreign affiliates of Indian companies, grew 2.1% in 2020-21 and amounted to $ 148.3 billion,” a- he declared.

Computer services and ITES accounted for 65.3 percent and 34.7 percent, respectively, of total software services exports. BPO services were the dominant component of IT services exports (ITES).

In addition, more than half of software services exports were made by limited liability companies.

“The United States was the main destination for software exports, accounting for 54.8%; Europe held 30.1%, almost half of which was in the United Kingdom,” he said.

The US dollar was the primary invoicing currency for software exports with a 72 percent share; the euro and the pound sterling together accounted for 15.9 percent.

The RBI further said that the share of mode 1 (cross-border supply) in India’s software service exports increased further to reach 78.4% in 2020-2021.

This share has increased over the years, from 38.8% in 2002-03 to 64.6% in 2009-10 and to 75.1% in 2019-20, to the detriment of the other three modes of delivery.

The other three modes are – mode-2 (consumption abroad); mode-3 (commercial presence); and mode-4 (presence of natural persons).

For the 2020-2021 cycle of the survey, 6,115 software exporting companies were contacted, of which 1,815 responded, including most of the large companies.

The companies surveyed accounted for 86.5 percent of total software services exports during the year.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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