India's Services Economy: A Global Leader

• India's services exports have surged from $53 billion in 2005 to $338 billion in 2023, nearly doubling the global growth rate and forming almost 10% of the national GDP.
• Computer services dominate India's services exports, making up 47% in 2023, while professional consulting has grown at a 17% compound annual growth rate over 18 years.
• The rise of specialized 'global capability centres' in major cities has driven growth, with revenues quadrupling to $46 billion and employee headcount reaching 1.7 million in 2023.
• Goldman Sachs Research forecasts services exports could form up to 12.4% of GDP by 2030, valued at $900 billion, under favorable conditions.
• Challenges include training sufficient technology graduates and managing environmental pressures, particularly in cities like Bengaluru, prompting diversification into other cities.

Source: GS