India’s services exports to overtake manufacturing exports by end of decade: Senthil Nathan S, Director, Ministry of Commerce & Industry

India’s services exports are set to overtake manufacturing exports shortly – by the end of the decade, if not sooner, Senthil Nathan S, Director, Ministry of Commerce and Industry said on Tuesday at the Global Services Export Conclave hosted by The Services Export Promotion Council (SEPC) in the capital.

This transformation, he added, is fuelled by manufacturing itself becoming more service-ified with AI, IoT and 3D printing revolutionising production processes and enabling us to compete globally.

Elaborating further on the strength of service exports, Nathan said that through the right efforts to skill and reskill, our economy can not only close skill gaps but also set a new benchmark in engineering efficiency. “It can help to drive India’s exports and global standing. Our future is engineered, from the homes we live in to the roads we travel. These silent background minds make life happen, delivering ease of living, through invisible engineers. I believe that with the right synergies between government, industry, and educational institutions, we are strengthening our talent pipeline – over one and a half million engineers annually – and building a workforce ready to shape the next wave of innovation.”

The sessions addressed India’s market potential, sectoral offerings, and emerging trends for consultancy services supported by multilateral funding agencies.

Abhay Sinha, Director General, SEPC added that India’s services exports have shown remarkable growth, rising from $325 billion in 2022-23 to an estimated $341 billion in 2023-24. Noting how the engineering services sector has made a vital contribution, increasing from $31 billion to $35 billion within the same period, he said the sector is projected to grow further, potentially reaching $100 billion by 2030 if a CAGR of 18% is maintained. “Our focus on engineering, design, construction, and R&D will be crucial in harnessing these opportunities. I am looking forward to the industry and the ministries coming together to focus on opportunities like expos that focus on capturing new emerging markets,” he stated.

Affirming his views, Amit Sharma, Design & Engineering Services Head in SEPC and Managing Director, Tata Consulting Engineers stated that India is witnessing a thriving services export economy driven by engineering services, which have generated an estimated $34 billion, growing at 15%. “Our consulting services are also expanding at an impressive 25%, showcasing expertise in energy transition and supply chain resilience,” he said. Lauding India’s engineering and scientific achievements, Sharma said that milestones such as the success of Chandrayaan 3 highlight the country’s capabilities. Sharma added that India is well-positioned to align its strengths with global demand. “The growth of this sector and the dedication of our engineers and innovators promise a bright future where India continues to set new standards in engineering and innovation worldwide and I hope we will continue having such gatherings to pave the way forward.”

The event encompassed the differentiated value India brings to the global stage, examining opportunities, challenges, and risks associated with international growth, alongside practical insights for expanding business footprints across diverse markets.

SEPC is an apex trade body established by the Ministry of Commerce and Industry. It’s primary objective is to facilitate and promote India’s service exports.

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