goldman-sachs-forecasts-india-s-services-exports-to-reach-900-billion-by-2030

Goldman Sachs has forecasted that the country's services exports are set to surge to $900 billion by 2030, accounting for approximately 12.4 percent of its Gross Domestic Product (GDP).

This optimistic outlook, announced as part of what the investment giant terms a "favorable scenario" for the Indian economy, highlights the growing prominence of the country's services sector on the global stage.

At the heart of this anticipated growth are the Global Capability Centres, which are expected to play a pivotal role in driving India's services export expansion.

Goldman Sachs emphasizes that India has been steadily gaining ground in professional consulting services globally, a sector characterized by relatively lower concentration compared to others.

With the rise of GCCs, India will strengthen its share in this domain, positioning itself as a preferred destination for high-value services.

The report highlights India's remarkable ascent in the global services export industry over the past decade and a half.

From constituting less than 2 percent in 2005, India's slice of the global services export pie has swelled to 4.6 percent by 2023, marking a significant leap.

In contrast, the share of goods exports, while also on an upward trajectory, remains relatively smaller, climbing from 1 percent in 2005 to 1.8 percent in 2023.

During this period, India has emerged as one of the fastest-growing economies worldwide, trailing only Singapore and Ireland in terms of growth rates. 

Goldman Sachs highlighted the pivotal role played by professional consulting services in India's export portfolio, with its share soaring by approximately 11 percentage points to reach 18.3 percent in 2023.

This surge is attributed to the proliferation of GCCs in India, which have contributed significantly to the country's capabilities in delivering high-value consulting services to global clients.

The forecast also holds promise for India's current account deficit, with Goldman Sachs predicting an improvement to average around 0.6 percent of GDP over the medium term.