UNCTAD Report: India to Rank 7th in Global Service Sector Exports in 2023
India's Growth in Service Sector Exports
According to a recent report by the United Nations Conference on Trade and Development (UNCTAD), India's services sector exports grew by 11.4 percent to $345 billion in calendar year 2023, despite ongoing global uncertainties. This remarkable growth has positioned India as the 7th largest exporter of services in the world, reflecting the country's robust performance in the service sector.
The key sectors driving India's growth include travel, transportation, medical, and hospitality services. While Indian services exports saw significant growth, China's services exports are projected to decline by 10.1 percent to $381 billion in 2023.
 |
| According to UNCTAD report, India will be the 7th country in the world in service sector exports in the year 2023. |
India's Position in the Global Service Sector
India's position as the 7th largest exporter of services underscores its growing influence in the global economy. It is the second-largest services exporter among developing countries, following China. According to Indian government data, services exports for fiscal year 2023-24 stood at $339.6 billion, representing a 4.4 percent increase year-on-year.
India's services exports have historically been concentrated in North America and Europe, but there is also significant growth potential in emerging markets such as Asia, Africa, and Latin America.
Global Perspective on Service Sector Exports
The United States leads the world in services sector exports, with a total of $999 billion, followed by the United Kingdom with $584 billion. Germany, Ireland, and France round out the top five exporters. The UNCTAD report highlights that global services sector exports are expected to grow by 8.9 percent in 2023, reaching $7.9 trillion. This growth is largely driven by the international travel sector, which saw exports increase by 40%. However, the transport sector experienced a decline of 12 percent.
India's Role in Global Trade and Importation
In addition to ranking 7th in service sector exports, India is the 9th largest services-importing country in the world, indicating its significant role in global trade. The United States remains the leading services importer, with $719 billion, followed by China, Germany, the United Kingdom, and Ireland.
About UNCTAD
UNCTAD, or the United Nations Conference on Trade and Development, was established in 1964 to promote trade and development on a global scale. Renamed on its 60th anniversary in 2024, UNCTAD serves as a permanent organization within the United Nations. Its headquarters is in Geneva, Switzerland, and its mission is to promote inclusive and sustainable development through trade.
Conclusion
India's anticipated rank as the 7th largest exporter of services in 2023 reflects the country's successful expansion in the service sector. Despite global uncertainties, India's growth in service sector exports signals a promising future for the Indian economy. As the country continues to diversify its services across various markets, it is poised to strengthen its position in the global economy and drive further growth in the years to come.
