Exports of software services up 2.1% to $148.3 billion in 2020-21: RBI survey

By: |
September 20, 2021 9:03 PM

Over half of the exports of software services were made by private limited companies.

Exports of software services"India's exports of software services (excluding exports through commercial presence) are estimated at $133.7 billion during 2020-21, registering 4% growth over the previous year," the RBI said.

Exports of software services, including services delivered by foreign affiliates of Indian companies, recorded 2.1 per cent growth during 2020-21 and stood at USD 148.3 billion, as per a Reserve Bank survey released on Monday.

The RBI released data related to the 2020-21 round of its annual survey on exports of computer software and information technology enabled services.

“India’s exports of software services (excluding exports through commercial presence) are estimated at USD 133.7 billion during 2020-21, registering 4.0 per cent growth over the previous year,” the RBI said.

Software exports by foreign affiliates through commercial presence, where the US is a major destination, stood at USD 14.6 billion in 2020-21.

“Total exports of software services, including services delivered by foreign affiliates of Indian companies, recorded 2.1 per cent growth during 2020-21 and stood at USD 148.3 billion,” it said.

Computer services and ITES accounted for 65.3 per cent and 34.7 per cent, respectively, of the total software services exports. BPO services were the dominant component of exports of IT enabled services (ITES).

Also, over half of the exports of software services were made by private limited companies.

“The United States was the major destination for software exports accounting for 54.8 per cent; Europe had 30.1 per cent share, nearly half of which was in the UK,” it said.

The US dollar was the principal invoicing currency for software exports with 72 per cent share; euro and pound sterling together accounted for another 15.9 per cent.

The RBI further said the share of mode-1 (cross-border supply) in India’s exports of software services increased further to 78.4 per cent in 2020-21.

This share has been increasing over the years, from 38.8 per cent in 2002-03 to 64.6 per cent in 2009-10 and further to 75.1 per cent in 2019-20, at the cost of the other three modes of delivery.

The other three modes are — mode-2 (consumption abroad); mode-3 (commercial presence); and mode-4 (presence of natural persons).

For the 2020-21 round of the survey, 6,115 software export companies were contacted, of which 1,815 companies responded, which included most of the large companies.

The responding companies accounted for 86.5 per cent of the total software services exports during the year.

Do you know What is India expected to grow 10 pc during current fiscal: NCAER Director General Poonam Gupt,FinMin releases Rs 9,871 cr grant to 17 state, Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1WTO ministerial: Fishery subsidy, patent waiver to fight Covid likely to top agenda
2U.S. takes aim at China’s ‘unfair trade practices’ at WTO review
3India expected to see higher salary with 9.3 pc hike in 2022: Report