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India's Software Exports Raise 12.2 Percent to $ 193 billion in 2022-2023: ESC Report

CIO Insider team | Tuesday, 16 January, 2024
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According to projections by the Electronics and Computer Software Export Promotion Council (ESC), exports of computer software and services—which include IT, ITES (IT enabled services), and business process outsourcing (BPO)—grew 12.2 percent in 2022–2023 compared to the previous year.

According to projections from ESC's Statistical Year Book, exports rose from $172 billion in 2021–2022 to $193 billion in 2022–2023.

The highest portion of exports, $126 billion, went to IT software and services, followed by BPO services ($52 billion), software product development ($5.1 billion), and engineering services ($9 billion), according to ESC chairman Sandeep Narula.

He continued by saying that exports of IT items increased by 13.33 percent and BPO services by 14.63 percent respectively. These figures are encouraging for the future since it is anticipated that worldwide trade in these goods will increase significantly in the upcoming years.

"With the industry picking up, it is expected to grow at a faster rate in 2024, as these products' markets continue to grow," Narula stated, noting that the worldwide IT & ITeS market—which does not include hardware—was projected to reach $1.11 trillion in 2023.

The deceleration in the US market share was accompanied by a higher rate of penetration in other traditional markets and forays into newer markets

The global services sector, of which India is a top destination with a 35 percent market share and is expected to reach $550 billion by 2022, increased more quickly than the IT/BPM industry.

According to ESC's research, Indian IT products are continuing to grow in their core markets and are finding their way into an increasing number of other nations. Although its share of the Indian software export market has decreased over the past year, the US remains the country's largest market. $106 billion, or 54.92 percent, of software exports came from the US in 2022–2023; this is a decrease from 58 percent the year before.

"The deceleration in the US market share was accompanied by a higher rate of penetration in other traditional markets and forays into newer markets,” says Gurmeet Singh, executive director, ESC.

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