Union Minister of Commerce & Industry, Piyush Goyal said that India’s MSMEs in the IT sector will play a significant role in achieving the $450 billion services export target in the next financial year.
While addressing the Global Confluence 2025 organised by Nasscom in New Delhi, Goyal emphasised how important the sector is for boosting services exports and creating jobs.
Goyal underscored the critical role of the IT and IT-enabled services (ITES) sector in India’s economic growth. He noted that the services sector exports reached approximately $340 billion last year, with IT and ITES contributing nearly $200 billion. This year, services exports are expected to reach between $380 billion and $385 billion, further solidifying India’s global presence.
He also praised Nasscom for fostering continuous learning, stating that the IT sector consistently remains ahead of the curve by embracing technologies like quantum computing, artificial intelligence and machine learning.
He emphasised on the importance of attracting global capability centres (GCCs) to India, highlighting the country’s vast talent pool as key advantage.
IT Sector Set to Challenge Merchandise Exports
In a recent report released by the Global Trade Research Initiative (GTRI) in November 2024, it was highlighted that the IT sector could surpass the merchandise sector by 2030.
“You should overtake merchandise exports next year,” said Goyal, adding, “as I see the figures coming and the growth has been scorching in the services side”.
In the 2023-24, the services exports stood at $341 billion, an increase of 4.85% over the previous.
The GTRI report also suggests that India's services exports are on track to surpass merchandise exports by 2030, reaching $618 billion.
“At this rate, by FY2030, services exports are expected to reach $618.21 billion, edging past merchandise exports, which are projected at $613.04 billion,” said GTRI report.
It added that most growth in India’s services sector comes from IT services and Other Business Services (OBS). However, the GTRI suggested that diversifying IT exports beyond the US and promoting OBS sectors are crucial for sustained growth.
(With inputs from PTI.)
