Indian services export to reach $800b by 2023: Goldman

Goldman Sachs, a renowned financial institution, has projected that India’s services exports will experience significant growth, reaching a value of $800 billion by 2030. This projection represents a substantial increase from the $340 billion recorded the previous year. The report says that this growth trajectory will fortify India’s external sector, making it more resilient against supply-side shocks and reducing volatility in the rupee exchange rate. The report says that India’s services exports are poised for substantial growth over the next decade, driven by both domestic strengths and global demand trends. This growth has the potential to enhance India’s economic resilience and contribute to its position in the global economy.

“Our baseline scenario suggests that services exports could reach around 11 per cent of gross domestic product by 2030 (as compared to 9.7 per cent of GDP in 2023), which amounts to around $800 billion (compared to around $340 billion in 2023),” said the report called ‘India’s rise as the emerging services factory of the world’.

It also indicates that despite the projected growth in services exports, the overall outlook for India’s current account balance in 2024 remains unchanged at 1.3 percent of GDP. This means that while there may be gains from the expansion of services exports, these gains are likely to be offset by two main factors they are, Geopolitical tensions in West Asia with volatile oil prices and Reduced agricultural exports to Iran. This highlight the importance of monitoring global developments and their implications for India’s economy.

The Goldman Sachs report released on April 29 says that India’s high-value services are poised for  growth, likely fueling increased demand for top-tier discretionary spending and both commercial and residential real estate.