Services exports hit all-time high of $250 billion in FY22; overall exports rise 34.5%

India’s services exports for the first time achieved the targeted $250 billion during the financial year 2021-22, according to data released by the Ministry of Commerce and Industry. The services exports grew by 21.31% during FY22 as against $206.09 billion during the previous financial year.

For the month of March 2022, the estimated value of services exports is $22.52 billion, up 8.31% vis-a-vis March 2021. Import of services during the month is projected to grow by 7.33% to $13.16 billion as against $12.26 billion a year earlier. The data for March 2022 is an estimation that will be revised based on the Reserve Bank of India’s (RBI’s) release.

The total services imports during April-January 2021-22 stood at $ 144.79 billion, registering a growth of 23.20% as compared to $117.52 billion during the same period last year.

The services sector contributes about 60% to India’s gross domestic product (GDP).

Meanwhile, India’s overall exports (merchandise and services) touched an all-time high of $669.65 billion in FY22, jumping by 34.50% over the same period last year. For the month of March, India’s exports grew by 15.51% to $64.75 billion over the corresponding period last year.

For FY22, overall imports are estimated to be $756.68 billion, up 47.80% over the same period last year.

Commenting on the record rise in services exports, Piyush Goyal, the Minister of Commerce and Industry, said India has achieved robust growth in exports despite the slowdown in the economy worldwide due to the Covid-19 pandemic and the recent geopolitical developments in Europe.

“Services sector has achieved the all-time high despite services like tourism, aviation and hospitality industry being severely affected due to the Covid-19 pandemic,” he said.

Goyal said India has been able to exceed the overall exports target of $650 billion due to the visionary leadership of the Prime Minister Shri Narendra Modi that we turn India into an export focussed economy. “The PM himself conducted meetings with India’s 180 missions abroad. Hectic parleys were held with the Export Promotion Councils and then the bar was set high, and yet doable,” he said.

He further stated if we have to make India a developed nation, we will have to increase our international engagement. Government has struck vital trade deals with the UAE and Australia towards this end, he said, adding more FTAs and Comprehensive Trade Agreements are in the works with the EU, UK, Canada and Israel.

“Starting from ‘whole of the government’ approach, today ‘whole of the nation’ has joined hands to make India emerge as a trusted partner at the international level, dedicating itself to turn into an economy that provides quality goods and services to the world,” he said.