Software service exports rise 17% to $157 bn in FY22: RBI survey
While computer services continued to account for over two-thirds of total exports, BPO services accounted for nearly 84 per cent of exports of IT-enabled services
India’s exports of software services, excluding exports through commercial presence, are estimated to have increased by 17.2 per cent to $156.7 billion during 2021-22, as per a survey conducted by the Reserve Bank of India (RBI).
While computer services continued to account for over two-thirds of total software services exports, BPO services accounted for nearly 84 per cent of exports of IT-enabled services (ITeS).
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Private limited companies’ share was 60 per cent of the total exports of software services whereas exports by public limited companies declined during the year, the RBI survey revealed.
US, Canada top destinations
The US and Canada were the top destinations for software exports with 55.5 per cent share, followed by Europe, of which nearly half was attributed to the UK.
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The US dollar remained the principal invoicing currency for software exports, followed by the euro and pound sterling, said the survey.
“The survey collects details on India’s exports of software services, computer services and information technology-enabled services (ITeS)/business process outsourcing (BPO) services as per type of activity, on-site/off-site nature of services, country of destination and four modes of supply,” said RBI chief general manager Yogesh Dayal in a release.
For the 2021-22 round survey, 6,218 software export companies were contacted, of which 2,074 companies, including most of the large companies, responded. The responding companies accounted for 89.4 per cent of the total software services exports during the year.
In terms of modes of supplying services, the share of Mode-1 (cross-border supply) in India’s exports of software services increased further to 80.9 per cent in 2021-22. The share of other three modes of delivery — consumption abroad, commercial presence, and presence of natural persons — declined, said the survey.
Total exports of software services, including services delivered by foreign affiliates of Indian companies, increased by 15.9 per cent during 2021-22 and stood at $171.9 billion. Local software business by foreign affiliates stood at $15.2 billion, with the US being the major destination.
4% increase in 2020-21
In 2020-21, India’s exports of software services (excluding exports through commercial presence) were estimated at $133.7 billion, registering 4 per cent growth over the previous year.
Computer services and ITeS contributed 65.3 per cent and 34.7 per cent, respectively, of the total software services exports. BPO services were the dominant component of exports of ITeS. Software exports by foreign affiliates through commercial presence, where the US is a major destination, stood at $14.6 billion in 2020-21.
