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Riding high on service exports

The service industry's share in exports increased from 2% in 2004 to 2.7% in 2006. There has been a broad–based growth of services on the trade front, which has continued during April–December 2007–08.

  • Software and services exports grew by 26.33% registering revenues of US $27.49 billion.
  • Business services exports touched US $12.09 billion.
  • Financial services grew at the rate of 61.49%.
  • Communication services exports touched US $1756 million.

According to an annual NASSCOM survey, the software and services industry is estimated to grow by 24–27% to US $49–50 billion. The exports growth rate would be 26–29%. IT software and services are estimated to account US $28-29 billion and ITeS–BPO is projected to increase to US $10.5–11 billion.

With the service sector riding an accelerated growth path, Lehman Brothers Asia estimates India to grow by as much as 10% every year in the next decade.

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