This story is from July 27, 2005

Services exports grow 106%

Priya Ranjan Dash / TNN / Jul 27, 2005, 01:28 IST

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NEW DELHI: There has been a fundamental shift in the India's commercial dealings with the outside world.

NEW DELHI: There has been a fundamental shift in the India's commercial dealings with the outside world. Services exports recorded an astounding growth of 105.7%, doubling to $51.3 billion in 2004-05 from $24.9 billion in 2003-04.
There was also a historic record 10.2 percentage point increase in the ratio of foreign trade to GDP, taking it to 41.5% in '04-05.It had taken 13 years previously for the foreign trade:GDP to inch up by 13.2 percentage points from 31.1% in 1991-92.
The highest increase in the trade:GDP ratio was in merchandise imports (3.9 percentage points) followed by services exports (3.3 percentage points), services imports (2.2 percentage points) and merchandise exports (0.9 percentage points).
Overall exports of goods and services went up from $89.7 billion in '03-04 to $132.2 billion in '04-05, an increase of 47.4%. Growth in exports of goods and services had never exceeded more than 20% in the last 15 years since 1991-92.

Data on servicewise break-up of exports are not available, but indirect evidence reveals that there was substantial growth in value-added services in communication, construction, financial, news agency, royalty, copyright, licence fee and management.
Exports of these services categorised as "miscellaneous services" (excluding software) are believed to have increased more than four-fold to $22.5 billion in 2004-05 from $4.7 billion in '03-04. In comparison to the doubling of services exports achieved in one year '04-05, it had taken as many as six years for services exports to double from $9.4 billion in 1997-98 to $20.8 billion in '02-03.
The highest growth in service exports was in the miscellaneous services category. Software exports went up by 41.8% to $17.3 billion in '04-05, the highest increase in the last four years.

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