Burnish the shine

As wages rise in urban centres like Bengaluru and Hyderabad—India's primary IT hubs—companies may look to other countries for cheaper alternatives or expand into smaller Indian cities with lower costs. Additionally, geopolitical tensions and protectionist policies in key markets like the United States could pose risks to India's export-driven growth model. Visa restrictions or changes in outsourcing regulations could impact the flow of business from these regions

- NARAIN BATRA

India is often celebrated for its rich cultural heritage, historical significance, and vibrant diversity. Today, however, it commands attention on another front: its burgeoning prowess in the services sector, particularly software services. Recent statistics showing India's services exports surpassing its merchandise exports are not just numbers but a testament to the country's growing strategic importance in the global tech services value chain.

India's services exports have reached a historic high, driven by continuous investment in digital infrastructure, policy support, and a skilled workforce. In October 2024, India's services exports hit a record $34.31 billion, a 22.3 percent increase compared to October 2023. This milestone underscores India's emergence as a global leader in digitally delivered services.

The country's digitally delivered services exports have grown from $30 billion in 2005 to $257 billion in 2023. This consistent upward trend highlights India's resilience and adaptability in the global digital economy.

Adding to this momentum is the proliferation of Global Capability Centres (GCCs) in India. GCCs—offshore units of multinational corporations—have evolved from being back-office operations to becoming strategic hubs for innovation and high-value work. As of 2024, India is home to over 1,700 Global Capability Centres (GCCs), employing over 1.9 million people.

These centres are responsible for critical functions such as product development, R&D, and digital transformation initiatives for some of the world's largest companies. The presence of these centres underscores India's role as a crucial hub for global business services, where talent meets opportunity.