India’s export of services is expected to touch $311 billion (Rs13,68,000 crore) by 2011/12, powered by the booming software, consultancy, engineering and tourism sectors, a survey showed on 5 April.
Services exports could even surpass merchandise exports, which are expected to more than double to $305.5 billion in the next five years, said the survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI).
India exported goods worth $112.4 billion during 2005/06 while export of services was $71.6 billion. Services exports are estimated at $91.5 billion this fiscal, and merchandise exports at $132.7 billion.
India’s service exports grew at 28% annually for the last five years, faster than the 22% growth in goods exports during the same period.
“With the current rate of growth in services to continue in the medium term, India’s exports of services will be close to $311 billion by 2012, overtaking the expected level of merchandise exports of $305.5 billion by that year,” said the survey.
During the first nine months of 2006/07, a buoyant service exports helped India cut current account deficit to $3 billion from $4.8 billion during April-Dec. 2005, the survey said citing government figures.
Software services was the highest foreign exchange earner at $21.8 billion during April-December 2006, followed by business and management consultancy at $16.5 billion and travel services at $6.4 billion, it said.
India’s trade minister Kamal Nath is scheduled to announce the annual foreign trade policy some time this month.