Updated April 30th, 2024 at 13:02 IST

India's services exports to hit $800 billion by 2030: Goldman Sachs

The report highlights that services exports could potentially contribute around 11% t of India's GDP by 2030, compared to 9.7% in 2023.

Reported by: Business Desk
Representative | Image:Shutterstock

India's services exports: India's services exports are poised for a substantial surge, projected to soar to $800 billion by 2030, according to a recent Goldman Sachs report titled 'India's rise as the emerging services factory of the world'. This robust growth trajectory, up from $340 billion in 2023, is anticipated to bolster the country's external sector resilience, mitigating supply-side shocks and reducing rupee volatility.

The report highlights that services exports could potentially contribute around 11 per cent of India's GDP by 2030, compared to 9.7 per cent in 2023. This expansion is expected to yield positive outcomes, including a current account deficit of 1.1 per cent of GDP, assuming stability in commodity prices and goods trade balance beyond 2024.

India's high-value services sector is forecasted to witness robust growth, driving upscale discretionary consumption as well as demand in commercial and residential real estate. This bodes well for the economy, signalling significant opportunities for growth and diversification.

Commerce and Industry Minister Piyush Goyal echoed confidence in India's export performance, despite global economic headwinds. He highlighted the resilience of the country's goods and services exports, attributing it to government measures such as production-linked incentives schemes and a focus on high-quality goods and services.

Goyal expressed satisfaction in India's ability to maintain export levels on par with the previous year, underscoring its resilience amid global trade uncertainties. He emphasised the significance of this achievement, particularly against the backdrop of declining international trade in many developing and less developed countries.

India's ambitious foreign trade policy, announced in 2023, aims to propel service exports to $1 trillion by 2030. This forward-looking strategy aligns with the country's aspirations to emerge as a key player in the global services arena, fostering sustainable economic growth and stability.

Published April 30th, 2024 at 11:48 IST