Software services export grows to $205.2 bn in FY24, US major destination

India's total exports of software services, including services delivered by foreign affiliates of Indian companies, increased to $ 205.2 billion during 2023-24 from $ 200.6 billion in the previous fiscal, according to a Reserve Bank survey.

India's exports of software services (excluding their sales through overseas commercial presence) increased by 2.8 per cent during 2023-24 to $ 190.7 billion, according to the data related to the 2023-24 round of RBI annual survey on computer software and information technology enabled-services (ITES) exports.

The US was the major software export destination with a 54 per cent share, followed by Europe (31 per cent share), where the United Kingdom was a major destination country, according to the data.

In the survey, 7,226 software export companies were contacted, of which 2,266 firms, including most of the large companies, responded. The participating companies together accounted for nearly 89 per cent of total software services exports.

"Computer services accounted for over two-thirds of India's total software services exports during the year; BPO services remained the dominant component of ITES exports," the survey said, adding private limited companies recorded higher growth in export of software services when compared to that by public limited companies.

Further, the US dollar remained the principal invoicing currency for India's software exports with a 72 per cent share, followed by the euro, rupee and pound sterling.

In terms of modes of delivery, cross-border supply of software services inched up to 83.5 per cent in 2023-24, whereas the share of overseas commercial presence mode of delivery declined to 7 per cent from 7.5 per cent in the previous year and 13.7 per cent in 2013-14.

Offsite services accounted for 90 per cent of the total export of software services. This share has risen from 80 per cent ten years ago.