In a recently released report, the Reserve Bank of India (RBI) highlighted that India’s software services exports grew by 2.8% in the fiscal year 2023-24, totaling $190.7 billion. This information comes from the RBI’s annual survey on computer software and information technology-enabled services (ITES), which collects detailed data on the country’s software export activities.
The survey reached out to 7,226 software export companies, with 2,266 responding, including a significant number of large firms. These participating companies represented nearly 89% of India’s total software service exports.
Key findings from the survey include:
- Dominance of Computer Services: Over two-thirds of the total software service exports were attributed to computer services, while business process outsourcing (BPO) services continued to be a significant component of the ITES sector.
- Private vs. Public Companies: Private limited companies showed stronger growth in software service exports compared to their public limited counterparts.
- Key Export Destinations: The United States emerged as the leading destination for software exports, accounting for 54% of the total, followed by Europe at 31%. The United Kingdom was noted as a major market within Europe.
- Currency Trends: The US dollar remained the dominant invoicing currency, making up 72% of software export transactions, with the euro, rupee, and pound sterling also in use.
- Shift to Off-Site Services: Off-site services comprised 90% of total software exports, a notable increase from 80% a decade ago.
- Delivery Modes: Cross-border supply of software services rose to 83.5% this year, while the share of overseas commercial presence dropped to 7%.
When including services delivered by foreign affiliates of Indian companies, total software service exports climbed to $205.2 billion for 2023-24, up from $200.6 billion the previous year. Local business activities conducted by these affiliates accounted for $14.5 billion, with the USA and UK remaining the top destinations for these services.
The data underscores India’s robust position in the global software services market, showcasing its growth and the ongoing demand for technology and IT-enabled solutions.