India’s software services exports up by 17.2% in FY22: RBI

India’s exports of software services (excluding exports through commercial presence) are estimated to have increased by 17.2% to $156.7 billion during FY2021-22, according to a data released by the Reserve Bank of India (RBI).  

The share of offsite mode of exports of software services by Indian IT services companies increased to 88.8% in fiscal FY 2021-22 as compared with 82.8% five years ago, it said. 

For the survey, RBI collects details on India’s exports of software services (computer services and information technology enabled services (ITES)/business process outsourcing (BPO) services) as per type of activity, on-site/off-site nature of services, country of destination and four modes of supply.  

In 2021-22, nearly 6,218 software export companies were contacted, of which 2,074 companies, including most of the large companies, responded, said RBI. The responding companies accounted for 89.4% of the total software services exports during the year.  

Computer services continued to account for over two-thirds of total software services exports. BPO services accounted for nearly 84% of exports of IT enabled services, said the report. 

Private limited companies accounted for 60% of the total exports of software services whereas exports by public limited companies declined during the year, it added.  

The United States and Canada were the top destination for software exports with 55.5% share, followed by Europe, of which nearly half was attributed to the United Kingdom, found the report.   

In terms of modes of supplying services, the share of Mode-1 (cross-border supply or offshoring) in India’s exports of software services increased further to 80.9% in 2021-22. On the other hand, the share of other three modes of delivery (consumption abroad, commercial presence and presence of natural persons) declined, it said.