POST-PANDEMIC TREND Digitisation, diversification power services sector

The rapid technology-driven transformaThe rapid technology-ice delivery and the diversification of India's services exports are two significant transformations that are reshaping India's services landscape, the Economic Survey 2023-24 said.

- YASH KUMAR SINGHAL

"India's services sector has thrived on lowcost offerings. The digitisation of services, coupled with appropriate policy nudges, kept progressively transforming the nature of service delivery almost irreversibly during the early part of the last decade. This trend accelerated post the pandemic... At the same time, India's services exports are diversifying beyond software to include Human Resources (HR), legal, and design services in line with emerging global demands," the Survey explained.

However, the Survey cautioned that in the short run, tentative global economic outlook and commodity price uncertainties present a serious challenge to input costs and demand for services.

"Thus, sustaining positive demand trends and effectively managing rising costs and competitive pressures will be critical for the services sector's continued growth and resilience in the upcoming year. The post-pandemic dynamism shown by the economy and the services sector, in particular, should help transcend these uncertainties and challenges," it added.