The Reserve Bank released the results of the 2017-18 round of its annual survey on exports of computer software and information technology enabled services (ITES). The survey provides information on various characteristics of India's exports of software services (e.g., type of activity; on-site/off-site nature of services; country of destination; and modes of supply).
For the 2017-18 round of the survey, 7,434 IT companies were approached, of which 1,546 companies (including most of the large companies) with a share of 81.4% in total software exports during the year responded. Exports of the remaining companies were estimated by imposing the distribution pattern of the reporting companies.
India's total exports of software services (excluding exports through overseas commercial presence) increased by 11.6% to US $ 108.4 billion in 2017-18. Computer services remained the dominant component of total exports of software services; there has been a marginal increase in the share of BPO services.
Exports of software services by private limited companies exceeded those of public limited companies for the first time in the survey's history. USA and Canada together accounted for 60% of exports of software services, followed by Europe, where the UK was the major export destination.
The US dollar was the invoicing currency for nearly three-fourth of the exports of software services, followed by the euro and the pound sterling. The off-site mode remained the preferred mode of delivery; the share of on-site services declined during 2017-18.
The share of exports of software services through the cross-border supply mode increased during the year; other three modes of delivery (viz., consumption abroad; commercial presence; and presence of natural persons) together accounted for 30%.
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Total exports of software services by India (including of services delivered by foreign affiliates of Indian companies, which were mainly present in the US and the UK) during 2017-18 are estimated at US$ 131.3 billion.
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