Business Standard

India's export cushion

Rising services surplus is likely to offset the goods trade deficit in the short and medium term

Illustration: Binay Sinha

Illustration: Binay Sinha

Pranjul BhandariAayushi Chaudhary
Some meaningful shifts have happened in India’s services economy. On a net basis, services exports are raking in $60 billion per year more in revenues than in the pre-pandemic period. This has provided much-needed relief on the balance of payments front.

And it’s not just inflation bumping these numbers up. At 40 per cent higher than pre-pandemic levels, services exports adjusted for inflation have outpaced high-tech, medium-tech and low-tech goods exports by a considerable margin.

In fact, India’s services continue to gain global market share, even as the share of goods seems to have flat-lined. 

So what’s going on? We’ve
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Mar 15 2023 | 10:17 PM IST

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