Mumbai: India has reported strong growth in world services trade in the post Covid-19 period, led by strong performance by the computer services segment, according to the Economic Survey.

Computer services comprised 49% of total services export in the first half of fiscal 2022 and continued to be the largest exported service in the first half of the fiscal 2022, said the Survey report for 2021-22 which was released on Monday. “It saw increased demand for digital support, cloud services and infrastructure modernisation owing to new pandemic challenges.”

Despite the Covid-19 pandemic-induced global restrictions and weak tourism revenue, India’s services export recorded 18.4% growth to $177.7 billion during April to December of 2021-22 compared with the year-ago period, and 11.0% growth over 2019-20 (April-December) surpassing the pre-pandemic levels, the survey said.

“This is mainly on account of the top three — computer, business and transportation services — that constitute more than 80% of total services exports,” the survey said.

After registering a slump in the first quarter of fiscal 2021, services export remained resilient from the second quarter and increased consistently to touch $60 billion in the third quarter of fiscal 2022, it said.

The government undertook a major reform of removing telecom regulations in the IT-BPO sector, allowing a large part of the workforce to work from home. According to a survey conducted by industry body Nasscom, these reforms have reduced compliance burden, enhanced productivity, increased global competitiveness and lowered the cost of doing business in India.

“EconomicSurvey acknowledges and reflects on positive impact of #OSP reforms towards growth of #ITBPM exports. Similar reforms towards enabling #hybridwork for #SEZ units, reduction in safe harbour margins for #GCC will go long way in making our exports more competitive globally,” Nasscom said on Twitter.

Computer software and hardware attracted the highest FDI equity inflows of $7.1 billion in April-September 2021. Singapore continues to be the top investing country in terms of FDI equity inflow, while the USA occupies the second position.

In the first half 2021-22, services export grew by 21.6%, deriving strength from global demand for software and IT services export. ITBPM services revenue reached $194 billion in 2020-21, adding 138,000 employees during the same period, noted the report.

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