Question
Consider the following statements. 1. Owing to
Covid-19 pandemic, India lost its dominance in the world services trade in FY22. 2. Software and business services together constitute more than 60% of India’s total services exports. 3. Weak tourism sector contributed to the loss of dominance. Which of the statements given above is/are correct?Solution
India maintained its dominance in the world services trade in FY22. Despite pandemic-induced global restrictions and weak tourism revenues, India’s services exports stood at USD 254.5 billion in FY22 recording a growth of 23.5% over FY21 and registered a growth of 32.7% in April-September 2022 over the same period of FY22. Hence, statements 1 and 3 are not correct. Software and business services together constitute more than 60% of India’s total services exports and exhibited strong growth during Q2FY23. While strong revenues in major information technology (IT) companies from various segments such as retail and consumer business; communications and media; healthcare; and banking, financial and insurance services drove the growth in software exports, a significant pick-up in engineering, and research and development related services boosted the growth in business services exports during the quarter. Hence, statement 2 is correct.
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