India's Services Exports Hit Record High in Oct: Digital Infrastructure, Policy Support Drive Growth

New Delhi, Dec 29 (PTI) Continuous investment in digital infrastructure, including data centres and high-speed internet, along with policy support, has propelled India's services exports to a "historic" milestone of USD 34.31 billion in October, a commerce ministry official said.

The official said India has established itself as a global leader in digitally delivered services exports, leveraging its robust IT sector and skilled workforce.

Services traded through computer networks, such as the internet, apps, emails, and digital intermediation platforms, have grown exponentially.

"India's services sector reached a historic milestone in October 2024, recording an all-time high in monthly exports of USD 34.31 billion, a 22.3 per cent increase compared to October 2023," the official added.

The key enabling factors that are helping the sector's growth included continuous investment in digital infrastructure, such as data centres and high-speed internet connectivity; initiatives like Digital India that have fostered a conducive environment for IT and digitally delivered services; and partnerships with international firms have expanded market access for Indian IT companies, the official said.

The country's digitally delivered services exports have witnessed a remarkable trajectory over the past two decades, soaring from a modest USD 30 billion in 2005 to USD 257 billion in 2023.

The growth has been particularly impressive since 2010, with exports nearly quadrupling from USD 20 billion to USD 80 billion by 2014.

The growth was consistent pre-Covid, reaching USD 191 billion in 2019. However, the pandemic acted as a catalyst, propelling the sector to new heights.

"By 2023, exports nearly doubled from the pre-Covid peak, underscoring the resilience and adaptability of the Indian digital services industry in navigating the challenges of the pandemic. This consistent upward trend highlights India's emergence as a global leader in the digital services sector, driven by factors such as a large pool of skilled IT professionals, competitive pricing, and a conducive business environment," the official said.

Going by the trend, India's leadership in the global digital economy is expected to strengthen further, driven by technological advancements and increasing demand for digital transformation services worldwide.