IT and Software Sector Supports the Economical Backbone of India

By Aarti Dhapte , 24 April, 2023

India's goods and services are on track despite all the ongoing global economic uncertainties and will reach a new record in 2023. In February 2023, reports published through the commerce and industry department showed that total exports would cross $750 billion for the financial year ending on March 31, 2023, with $676 billion in 2021-2022.

Indian Services exported for the current financial year amounted to $268 billion by the end of January 2023, as per the data given by the Department of Commerce. It surpassed 2022 with a total of $254 billion, with two months more. Again, good exports, which were affected by slowing global demand in recent months, trailed the entire year for 2021-22 by 12 percent by the end of January, as per the reports. But the exports year-to-date were up to 9 percent compared to the same financial year, 2021.

India is one of the most significant services exporters in the world, driven by its robust software and IT services, as per the survey reports. According to the news, telecommunications, and information services are the country's largest export by a good margin in the financial year 2021-2022. Along with other business services, it accounted for more than 70 percent of services of exports and 30 percent of total exports in the same year.

As India offers low-cost knowledge-based services, the demand for such has not fallen amidst a global economic slowdown. According to the Economic Survey 2022-2023, this resilience regarding economic turmoil explains why India was the fastest-growing major economy in 2022, according to the estimates of the International Monetary Fund.