New Delhi: Indian exporters and service sector was able to meet all commitment to global customers across the world in the last 15-16 months despite Covid-19 global pandemic, said Commerce and Industries Minister Piyush Goyal. While addressing the ‘2nd Indo-US Services Summit’, organised by Indo American Chamber of Commerce (IACC) on Saturday, Goyal said India’s service sector was able to service the global customers without failure throughout the last 15-16 months. “Our services exports are back to 97% level of the previous year,” said the commerce minister. India’s total services exports have increased twelve fold in last two decades, from $17 billion in 2001-02 to US$ 205 billion in FY 2020-21.
From low-cost to high-value services
Goyal said India was now moving beyond a low-cost service provider to a high value add partner. “Back offices in India are evolving into brain offices,” Goyal told the audience. Goyal said India was also rapidly progressing to become one of the world’s largest digital markets in the areas such as hospitality, fintech, agritech, entertainment, accountancy, law, cyber security, healthcare & tourism.
India’s IT-BPO sector
India has emerged as the world’s preferred business process outsourcing destination (BPO) over the last two decade due to availability of large pool of English speaking professionals and skilled people. According to an industry estimate, India handles more than half of world’s business outsourcing process business. India’s IT-BPO sector was expected to take a hit during the three month long nationwide lockdown as Prime Minister Narendra Modi had imposed the world’s most stringent lockdown in March last year to slowdown the community transmission highly contagious coronavirus.
However, India’s service providers were quickly able to adapt to work from home options to meet the global customers’ demand without much interruption. Goyal said the services sector holds a lot of promise in aiding economic recovery during the post Covid period.
India-US Service Trade
Addressing a gathering of Indian and US businesses, Goyal said the services trade between the US and India play a crucial role as fintech, agritech, accountancy, law, healthcare and cyber security have emerged as the new areas of opportunities. “When we talk of India-US partnership, we each have areas of strengths where we excel. US is hub of innovation, technology, research & quality education.
India has skilled and intelligent manpower at competitive cost. Uniting our strengths will create an unbeatable combination,” Goyal said. India exported goods and services worth $49.85 billion in June this year, which is an all time record. While merchandise export was at $32.50 billion, the services exports are estimated at $17.35 billion.
