India's software exports surpass $205 billion, focus on US market

India’s total software services exports, including those provided by overseas subsidiaries of Indian companies, are expected to rise to $205.2 billion in the financial year 2023-24, up from $200.6 billion the previous year, indicating stability and growth in the country’s software exports, according to the Reserve Bank of India (RBI) annual survey.

India’s software services exports (excluding revenue from overseas commercial presence) are expected to grow 2.8% to $190.7 billion in 2023-24, a testament to the strength of India’s information technology and related services (ITES) sector, one of the pillars of the economy , the survey data showed.

India's software exports are expected to reach $205.2 billion in the 2023-2024 financial year, behind only the two most formidable powers, the United States and Europe (Illustration photo)

Among the major software export markets, the US leads with a 54% share, followed by Europe with 31%, with the UK being a key destination. The US market continues to be the largest consumer of Indian software services, underscoring the strong trade relationship between the two countries in the technology sector.

The RBI survey collected data from 7,226 software exporters, of which 2,266, including most large enterprises, responded. These companies account for nearly 89% of the country's total software services exports. The report said that computer services accounted for more than two-thirds of India's total software services exports in the past year, while business process outsourcing (BPO) services remained the dominant component of ITES exports.

Notably, private companies have recorded higher growth in software services exports than public companies, reflecting their competitiveness and flexibility in seizing market opportunities.

The US dollar continues to be the main currency of payment for Indian software exports, accounting for 72% of the total value. Other currencies such as the euro, rupee and pound also play an important role but with smaller shares.

In terms of supply mode, cross-border software services will account for 83.5% of total exports in 2023-2024, up significantly from the previous year. Meanwhile, the proportion of services provided through commercial presence abroad will decline to 7%, compared to 7.5% the previous year and 13.7% in 2013-2014.

Off-site services, which include services not directly at the customer's location, continue to account for an overwhelming 90% of total software exports, up significantly from 80% a decade ago. This shows the strong growth of the remote working model, an increasingly popular trend in the global IT industry.

India has established itself as a leading player in software exports with a significant turnover in 2023-24. Steady growth, coupled with a strong presence in major markets like the US and Europe, continues to propel the country’s IT industry to grow and expand.

Source: https://congthuong.vn/xuat-khau-phan-mem-cua-an-do-vuot-205-ty-usd-tap-trung-vao-thi-truong-hoa-ky-353497.html