India's services exports grow 11.4% in 2023: UNCTAD report

India's services exports jumped 11.4 per cent to USD 345 billion in 2023 despite global economic uncertainties, while China's shipments from the sector contracted by 10.1 per cent to USD 381 billion, according to a UNCTAD report. Sectors that contribute to India's services export growth include travel, transport, medical and hospitality. With an 8.9 per cent annual rise in current dollar value terms, the world services exports surpassed USD 7.9 trillion in 2023, a quarterly bulletin of UNCTAD said.

The leading exporters among developing economies include India, China, Singapore, Turkiye, Thailand, Mexico, and Saudi Arabia, it added. India's services imports, however, dipped marginally by 0.4 per cent to USD 248 billion last year. "The main driver of the YoY (year-on-year) rise of services exports in Q4 2023 was the ample growth of international travel receipts. In the post-COVID-19 recovery, travel receipts increased by 70 per cent in Asia (YoY)," the report said. Commenting on India's services exports, an industry expert said that the export of IT and IT-enabled services and travel is going strong.

Business services like engineering, architecture, legal and accounting services and research and management consulting services stand to benefit from leveraging the opportunities presented by the government initiatives. India's service exports have historically been concentrated in North America and Europe, but there is also significant potential for growth in emerging markets, such as Asia, Africa, and Latin America. "Diversification of export destinations by Indian exporters can help cut dependence on traditional markets and open up new opportunities for the sector," the expert said.