Exports of software services up 2.1% to $148.3 billion in 2020-21: RBI survey

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Exports of software services, including services delivered by foreign affiliates of Indian companies, recorded 2.1 percent growth during 2020-21 and stood at $148.3 billion, as per a Reserve Bank survey released on Monday.

The RBI released data related to the 2020-21 round of its annual survey on exports of computer software and information technology enabled services.

"India's exports of software services (excluding exports through commercial presence) are estimated at $133.7 billion during 2020-21, registering 4.0 percent growth over the previous year," the RBI said.

Software exports by foreign affiliates through commercial presence, where the US is a major destination, stood at $14.6 billion in 2020-21.

"Total exports of software services, including services delivered by foreign affiliates of Indian companies, recorded 2.1 percent growth during 2020-21 and stood at $148.3 billion," it said.

Computer services and ITES accounted for 65.3 percent and 34.7 percent, respectively, of the total software services exports. BPO services were the dominant component of exports of IT enabled services (ITES).

Also, over half of the exports of software services were made by private limited companies.

"The United States was the major destination for software exports accounting for 54.8 percent; Europe had 30.1 percent share, nearly half of which was in the UK," it said.

The US dollar was the principal invoicing currency for software exports with 72 percent share; euro and pound sterling together accounted for another 15.9 percent.

The RBI further said the share of mode-1 (cross-border supply) in India's exports of software services increased further to 78.4 percent in 2020-21.

This share has been increasing over the years, from 38.8 percent in 2002-03 to 64.6 percent in 2009-10 and further to 75.1 percent in 2019-20, at the cost of the other three modes of delivery.

The other three modes are -- mode-2 (consumption abroad); mode-3 (commercial presence); and mode-4 (presence of natural persons).

For the 2020-21 round of the survey, 6,115 software export companies were contacted, of which 1,815 companies responded, which included most of the large companies.

The responding companies accounted for 86.5 percent of the total software services exports during the year.