India’s Service Exports Increase by 11.4% in 2023: UNCTAD Report

The United Nations Conference on Trade and Development (UNCTAD) released its fourth quarterly (Q4) report for 2023, highlighting a significant increase in India’s service exports. Despite global economic uncertainties, India’s service exports grew by 11.4% to USD 345 billion in 2023.

Key Findings:

• India’s Growth: India’s service exports reached USD 345 billion, marking an 11.4% increase in 2023.
• China’s Performance: China’s service exports decreased by 10.1% to USD 381 billion, yet China remained the top performer among developing countries, followed by India.

Global Trends:

• World Services Export: Increased by 8.9% to USD 7.9 trillion in 2023.
• Q4 2023 Growth: World services exports grew by 8.0% in the fourth quarter.
• Top Performers (Developed Economies):
  • United States: USD 999 billion
  • United Kingdom: USD 584 billion
  • Germany: USD 440 billion
• Top Performers (Developing Economies): China, India, Singapore, Turkey, Hong Kong, Thailand, and Taiwan.

Drivers of Growth:

• International Travel Receipts: Main driver for the year-on-year increase in services exports, with a 40% global increase and a 70% increase in Asia post-COVID-19 recovery.

India-Specific Insights:

• Growth Sectors: Travel, transport, medical, and hospitality sectors significantly contributed to the growth of India’s services export.
• Service Imports: India’s services imports decreased marginally by 0.4% to USD 248 billion in 2023.

Comparative Insights:

• Leading Importers: The United States topped the list of leading importers among developed economies with USD 719 billion.
• Government Data: According to the Government of India (GoI), services export increased by 4.4% year-on-year to USD 339.6 billion in FY24 (2023-24).

About UNCTAD:

• Secretary-General: Rebeca Grynspan (Costa Rica)
• Headquarters: Geneva, Switzerland
• Member Nations: 195
• Established: 1964

This report underscores the resilience and growth potential of India’s service sector amid global economic challenges, positioning India as a key player in the global services market.