India’s services exports shot up by a record 26.6 per cent in 2022-23 (FY23) to $322 billion, according to data released by the Reserve Bank of India (RBI)

Thus closing the gap with merchandise exports that grew only 6 per cent to $447 billion in the same period.

Services imports, on the other hand, grew 22.2 per cent to $179.7 billion, leading to a services trade surplus of $142.5 billion.

With a $267 billion merchandise trade deficit in the last financial year, the country ended up with a cumulative trade deficit (or net exports) of $124.5 billion.

India’s services exports range from information technology (IT) to services provided by doctors and nurses abroad.

While software exports dominate India’s services exports

“other business services” exports have seen a strong ramp-up recently, accounting for 24 per cent of the total services exports in the first nine months (April-December) of FY23, from 19 per cent in FY14.