India’s export surge: A resilient economic odyssey to $776 billion and beyond

[my2cents]

https://www.financialexpress.com/policy/economy-indias-export-surge-a-resilient-economic-odyssey-to-776-billion-and-beyond-3246127/lite/

By Srivatsan Sridhar

While major economies around the world still seem to be reeling from the after-effects of the Covid-19 pandemic, the Indian economy has a different story to tell altogether. India’s exports have surged to an unprecedented $776 billion, marking a 36 percent increase from just $500 billion two years ago. The country’s goods exports are up nearly 53 per cent in the last two years from a four-year low of $292 billion during FY 2020-21, thanks to the post-Covid surge in the country’s foreign trade. Although significant challenges remain in the global environment, India has turned out to be one of the fastest-growing economies in the world last fiscal. In the backdrop of a global slowdown, this robust growth trajectory, which is a testimony to the resilience of the Indian economy, is primarily fuelled by three factors:
Zombie firms are rising up again! Killing real competition in Indian telecom and aviation
Services exports grew by 56.4 percent from $206 billion in FY 2020-21. This sharp uptick in India’s service exports in the last two years has ended a period of poor show by the foreign trade sector in the previous five years. This growth is expected to continue further at 25 per cent, majorly propelled by a rapid rise in the exports of small services which include digital marketing, web development and SaaS products. The services sector in India is marked by a young, tech-savvy workforce; abundantly qualified engineers and widespread internet access which are the key contributors to this growth story. By leveraging its demographic advantages and technological prowess, this sector has managed to seamlessly deliver high-quality services at competitive prices, thereby solidifying its position in the global services hub.

While the IT services category is expanding silently at its own pace, contributing close to 45% of the total services exports, there’s another category that has been pushing the growth. Business services, which include accounting, audit, quality assurance, research and development, management consulting, and building digital and artificial intelligence (AI) capabilities account for 25 per cent of the services exports.

 

[Skull and Bones]

We have more export potential if there is department to connect our SMEs with global vendors and suppliers.