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India Emerging As Services Factory Of The World, Service Exports Set To Hit $800 Billion By 2030: Goldman Sachs
Representative Image (INDRANIL MUKHERJEE/AFP/Getty Images)
A recent report by Goldman Sachs has highlighted India's remarkable ascent in global services exports, with the country more than doubling its share over the last 18 years.
The surge has been significantly propelled by the proliferation of Global Capability Centers (GCCs), which have emerged as vital offshore entities supporting various business processes, reported TOI.
According to the report titled "India’s rise as the emerging services factory of the world" by Goldman Sachs, GCCs have not only boosted real estate but also expanded services exports, contributing to economic growth and job creation.
As per the report, revenues of GCCs in India have witnessed a nearly fourfold increase, growing at a compound annual growth rate (CAGR) of 11.4 per cent over the last 13 years, reaching $46 billion by fiscal year 2023.
Moreover, the number of GCCs has more than doubled from 700 to 1,580 during the same period, with the sector adding approximately 1.3 million employees, representing an 11.6 per cent CAGR and totaling 1.7 million employees by FY23.
The report also forecasts continued robust growth in high-value services in the coming years, which is expected to drive top-end discretionary consumption and demand for commercial and residential real estate domestically.
It's important to note that India's services exports surged to nearly $340 billion in 2023, growing at a CAGR of around 11 per cent since 2005, surpassing the growth rate of global goods exports.
Consequently, India's share in global services exports climbed from under 2 per cent in 2005 to 4.6 per cent in 2023, while its share in goods exports increased from 1 per cent to 1.8 per cent during the same period.
