Arete Consultants

India’s services exports are set to reach $800 billion by 2030 from $340 billion last year, making the external sector resilient to supply-side shocks and reducing the rupee volatility, according to Goldman Sachs report, ‘India’s rise as the emerging services factory of the world’. “Our baseline scenario suggests that services exports could reach around 11 percent of GDP by 2030 (versus 9.7 percent of GDP in 2023), which amounts to around $800 billion (compared to around $340 billion in 2023),” the Goldman Sachs report said, projecting a current account deficit of 1.1 percent of the GDP, “assuming no significant moves in commodity prices and goods trade balance beyond 2024”.
India’s high-value services are likely to see strong growth, which in turn will drive top-end discretionary consumption and commercial and residential real estate demand, the GS report, which was released on April 29, said. Earlier in March, Commerce and Industry Minister Piyush Goyal exuded confidence that the country’s goods and services exports for FY 2023-24 will be at the same level as that in the previous year. despite economic slowdown and uncertainties in global trade. He also said that the government measures such as production-linked incentives schemes and focus on high-quality goods and services would help in containing the country’s trade deficit. “I am happy to share with you that we close the current year in March at the same level as last year. We have a little bit of an adjustment between goods and services, but collectively we will be at the same level as last year, which will be a very, very significant achievement given that most developing countries and less developed countries are seeing a fall in their international trade,” Goyal told PTI in an interview in March. India’s foreign trade policy, announced in 2023, targeted $1 trillion of service exports by 2030.