Services exports may reach $325 billion in FY23, says SEPC

The country’s services export is expected to reach $325 billion in 2022-23 on account of increasing demand for all kinds of services and gradual resumption of regular international travels, according to the Service Export Promotion Council (SEPC) Chairman Sunil H Talati.

He said by the end of the ongoing fiscal year, services exports would reach about $250 billion.

The estimated value of services export for April-January 2021-22 is $209.83 billion, exhibiting a growth of 25.31 % as compared to the year-ago period’s $167.45 billion.

“With the hope of COVID-19 waning away soon, demand for all kinds of services is increasing in the global markets, so we are setting an ambitious target of USD 325 billion in 2022-23,” Talati, Chairman of Services Export Promotion Council (SEPC) said.

He said support measures for the sector in the new foreign trade policy would help further boost the outbound shipments. It had earlier proposed an alternative scheme to SEIS (Services Export from India Scheme) — DRESS (Duty Remission on Export of Services Scheme) to boost exports.

“Despite the pandemic, the services sector has managed to retain 90-91 % of its last year’s performance in terms of overall exports,” he said adding services exports have been growing at a compound annual growth rate (CAGR) of 8-9 % for the last 20 years and the sector is eighth largest in the world and second in Asia Pacific region.

“We need to have a system of incentive for services exports,” Talati said.