INDIA'S SERVICES EXPORTS will likely defy the impending recession in the largest markets - the US and the EU - and grow at an impressive pace in FY23, even as the merchandise sector is expected to see a slowdown in growth.
Services exports are expected to jump 18% on year to a fresh peak of $300 billion in the current fiscal, Services Export Promotion Council (SEPC) chairman Sunil Talati, told FE. Already, services exports climbed 27% in the June quarter to $71 billion, he said.
If anything, a sharp slowdown in growth or recession in advanced economies may brighten the prospects for Indian services exporters, as these countries tend to start diverting a larger number of orders to cheaper destinations to cut down on costs, Talati said. This is especially true of segments like accountancy and legal services.
Senior company executives in the services sector that FE spoke to say their order flows remain strong. While a few segments may get affected, on a net basis, export order flows are expected to remain robust in the coming months, some of them said. The US (and Canada) and Europe (including the UK) made up 56.2% and 30.1%, respectively, of India's software services exports worth $134 billion in FY21, according to the latest RBI data.
This story is from the August 03, 2022 edition of Financial Express Mumbai.
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This story is from the August 03, 2022 edition of Financial Express Mumbai.
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