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Date : Sep 08, 2022
Survey on Computer Software and Information Technology Enabled Services Exports: 2021-22

Today, the Reserve Bank released the data1 related to the 2021-22 round of its annual survey on computer software and information technology enabled services exports. The survey2 collects details on India’s exports of software services {computer services and information technology enabled services (ITES)/business process outsourcing (BPO) services} as per type of activity, on-site/off-site nature of services, country of destination and four modes of supply.

For 2021-22 round of the survey, 6,218 software export companies were contacted, of which 2,074 companies, including most of the large companies, responded. The responding companies accounted for 89.4 per cent of the total software services exports3 during the year (Table 1).

Highlights:

  • India’s exports of software services (excluding exports through commercial presence) are estimated to have increased by 17.2 per cent to US$ 156.7 billion during 2021-22 (Table 2).

  • Computer services continued to account for over two-thirds of total software services exports.

  • BPO services accounted for nearly 84 per cent of exports of information technology (IT) enabled services (Table 3).

  • Private limited companies accounted for 60 per cent of the total exports of software services whereas exports by public limited companies declined during the year (Table 4).

  • The United States and Canada were the top destination for software exports with 55.5 per cent share, followed by Europe, of which, nearly half was attributed to the United Kingdom (Table 5).

  • The US dollar remained the principal invoicing currency for software exports, followed by the Euro and Pound sterling (Table 6).

  • The share of off-site mode of exports of software services continued to increase and stood at 88.8 per cent in 2021-22 as compared with 82.8 per cent five years ago (Table 7).

  • In terms of modes of supplying services, the share of Mode-1 (cross-border supply) in India’s exports of software services increased further to 80.9 per cent in 2021-22; the share of other three modes of delivery (viz., consumption abroad; commercial presence; and presence of natural persons) declined (Table 8).

  • Total exports of software services, including services delivered by foreign affiliates of Indian companies, increased by 15.9 per cent during 2021-22 and stood at US$ 171.9 billion; local software business by foreign affiliates stood at US$ 15.2 billion, with the United States being the major destination (Tables 8, 9 and 10).

(Yogesh Dayal)     
Chief General Manager

Press Release: 2022-2023/840


Table 1: Survey Response and Final Estimates for 2021-22 – A Snapshot
Item Reported Final Estimates
₹ crore US$ billion ₹ crore US$ billion
(1) (2) (3) (4) (5)
1. No. of companies 2,074 2,074 6,218 6,218
2. Total Exports of Software Services 10,43,321 140.1 11,67,404 156.7
      2.1 IT services 6,88,444 92.4 7,57,352 101.7
      2.2 Software Product Development 28,177 3.8 33,640 4.5
      2.3 BPO Services 2,71,743 36.5 3,14,851 42.3
      2.4 Engineering Services 54,957 7.4 61,561 8.2
3. Total Exports of Software Services including commercial presence 11,56,650 155.2 12,80,735 171.9
      3.1 Mode 1 (cross-border supply) 9,25,719 124.2 10,35,724 139.1
      3.2 Mode 2 (consumption abroad) 964 0.1 1,080 0.1
      3.3 Mode 3 (commercial presence) 1,13,330 15.2 1,13,330 15.2
      3.4 Mode 4 (presence of natural person) 1,16,637 15.7 1,30,601 17.5
Notes:
1. The sum of components may differ from total due to rounding off.
2. The amount in US $ terms is arrived at by using annual average rupee/ dollar exchange rate.
3. These are also applicable for the remaining tables.

Table 2: Software Services Exports from India
Activity 2020-21 2021-22
₹ crore US$ billion Share (%) ₹ crore US$ billion Share (%)
(1) (2) (3) (4) (5) (6) (7)
A. Computer Services 6,47,908 87.3 65.3 7,90,992 106.2 67.8
   of which:            
         i) IT services 6,14,678 82.8 61.9 7,57,352 101.7 64.9
         ii) Software Product Development 33,230 4.5 3.4 33,640 4.5 2.9
B. IT Enabled Services 3,44,233 46.4 34.7 3,76,412 50.5 32.2
   of which:            
         i) BPO Services 2,78,507 37.5 28.0 3,14,851 42.3 27.0
         ii) Engineering Services 65,726 8.9 6.7 61,561 8.2 5.2
Total Export of Software Services (A+B) 9,92,141 133.7 100.0 11,67,404 156.7 100.0

Table 3: Industry-wise Distribution of ITES/BPO Services Exports
Activity 2020-21 2021-22
₹ crore US$ billion Share (%) ₹ crore US$ billion Share (%)
(1) (2) (3) (4) (5) (6) (7)
A. BPO Services 2,78,507 37.5 81.0 3,14,851 42.3 83.6
  (i) Business consulting services including public relations services 34,510 4.6 10.0 36,110 4.8 9.5
  (ii) Finance and accounting auditing bookkeeping and tax consulting services 43,223 5.8 12.6 47,094 6.3 12.5
  (iii) HR administration 1,685 0.2 0.5 2,229 0.3 0.6
  (iv) Supply chain and other management services/ logistics 1,139 0.2 0.3 888 0.1 0.2
  (v) Medical transcription and document management 5,365 0.7 1.6 5,063 0.7 1.4
  (vi) Content development and management and publishing 1,949 0.3 0.6 2,363 0.3 0.6
  (v) Other BPO services 1,90,636 25.7 55.4 2,21,104 29.8 58.8
B. Engineering Services 65,726 8.9 19.0 61,561 8.2 16.4
  (i) Embedded solutions 10,550 1.4 3.1 10,284 1.4 2.8
  (ii) Product design engineering (mechanical electronics excluding software) 29,996 4.0 8.7 5,356 0.7 1.4
  (iii) Industrial automation and enterprise asset management 1,702 0.2 0.5 7,895 1.1 2.1
  (iv) Other engineering services 23,478 3.3 6.7 38,026 5.0 10.1
Total (A+B) 3,44,233 46.4 100.0 3,76,412 50.5 100.0

Table 4: Organisation-wise Distribution of Software Services Exports
Types of Organisations 2020-21 2021-22
₹ crore US$ billion Share (%) ₹ crore US$ billion Share (%)
(1) (2) (3) (4) (5) (6) (7)
Private Limited Company 5,25,194 70.8 53.0 6,99,890 93.9 59.9
Public Limited Company 4,44,682 59.9 44.8 4,35,333 58.4 37.3
Others# 22,265 3.0 2.2 32,181 4.4 2.8
Total 9,92,141 133.7 100.0 11,67,404 156.7 100.0
# Others include mostly LLPs/proprietor firms.

Table 5: Software Services Exports – Major Destination
Region 2020-21 2021-22
₹ crore US$ billion Share (%) ₹ crore US$ billion Share (%)
(1) (2) (3) (4) (5) (6) (7)
United States of America & Canada 5,57,187 75.1 56.2 6,47,559 86.9 55.5
Europe 2,98,932 40.3 30.1 3,61,779 48.6 31.0
   of which,            
      United Kingdom 1,42,670 19.2 14.4 1,73,593 23.3 14.9
Asia 66,573 9.0 6.7 75,881 10.2 6.5
   of which,            
      East Asia 59,429 8.0 6.0 67,009 9.0 5.7
      West Asia 6,747 0.9 0.7 8,289 1.1 0.7
      South Asia 397 0.1 0.1 584 0.1 0.1
Australia & New Zealand 31,054 4.2 3.1 34,088 4.6 2.9
Other countries 38,395 5.1 3.9 48,097 6.4 4.1
Total 9,92,141 133.7 100.0 11,67,404 156.7 100.0

Table 6: Software Services Exports - Currency Composition of Invoice
Currency 2020-21 2021-22
₹ crore US$ billion Share (%) ₹ crore US$ billion Share (%)
(1) (2) (3) (4) (5) (6) (7)
USD 7,14,730 96.3 72.0 8,23,371 110.5 70.5
EUR 92,230 12.4 9.3 1,16,729 15.7 10.0
GBP 65,547 8.8 6.6 74,165 10.0 6.4
INR 54,131 7.3 5.5 79,558 10.7 6.8
AUD 26,364 3.6 2.7 28,493 3.8 2.4
Other Currencies 39,139 5.3 3.9 45,088 6.0 3.9
Total 9,92,141 133.7 100.0 11,67,404 156.7 100.0

Table 7: Software Services Exports – Type of Services
Type of Services 2020-21 2021-22
₹ crore US$ billion Share (%) ₹ crore US$ billion Share (%)
(1) (2) (3) (4) (5) (6) (7)
On-site services 1,28,289 17.3 12.9 1,30,601 17.5 11.2
Off-site services 8,63,852 116.4 87.1 10,36,803 139.2 88.8
Total 9,92,141 133.7 100.0 11,67,404 156.7 100.0

Table 8: Mode-wise Exports of Software Services
Type of Mode 2020-21 2021-22
₹ crore US$ billion Share (%) ₹ crore US$ billion Share (%)
(1) (2) (3) (4) (5) (6) (7)
Mode 1 (cross-border supply) 8,62,661 116.2 78.4 10,35,724 139.1 80.9
Mode 2 (consumption abroad) 1,191 0.2 0.1 1,080 0.1 0.1
Mode 3 (commercial presence) 1,08,031 14.6 9.8 1,13,330 15.2 8.8
Mode 4 (presence of natural person) 1,28,289 17.3 11.7 1,30,601 17.5 10.2
Total 11,00,172 148.3 100.0 12,80,735 171.9 100.0

Table 9: Software Business by Foreign Affiliates of Indian Companies during 2021-22 ─ Activity Distribution
(Amount in ₹ crore)
Activity Locally* To India Other Countries
(1) (2) (3) (4)
IT services 21,154 428 1,684
Software product development 481 53 215
BPO services 11,185 836 2,790
Engineering services 3,163 17 268
Other services 77,347 52,579 10,429
Total (₹ crore) 1,13,330 53,913 15,386
Total (US$ billion) 15.2 7.2 2.1
*Software business by foreign affiliates of Indian companies “locally” indicates Mode-3 (commercial presence).

Table 10: Software Business by Foreign Affiliates of Indian Companies during 2021-22 ─ Country Distribution
(Amount in ₹ crore)
Country Share in Total Software business by foreign affiliates (%) Software business by foreign affiliates
Locally To India Other Countries
(1) (2) (3) (4) (5)
United State of America 42.5 49,590 25,333 2,676
United Kingdom 23.5 18,406 22,512 2,017
Germany 5.8 8,396 1,586 691
Canada 5.6 8,870 194 1,068
Singapore 4.5 5,569 1,019 1,580
Netherlands 4.3 5,985 1,462 407
Other Countries 13.8 16,514 1,807 6,947
Total (₹ crore) 100.0 1,13,330 53,913 15,386
Total (US$ billion) - 15.2 7.2 2.1

1 The previous data release in the series, covering 2020-21 survey round, was published on September 20, 2021 on the RBI website.

2 The survey schedule is given in the Annex.

3 Exports of relatively small non-responding companies have been estimated as per the methodology published in the article titled ‘Survey on Computer Software and Information Technology Enabled Services Exports: 2016-17’ on March 2018 issue of the RBI Bulletin.


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