India has experienced a rapid growth in its share of global services exports over the past 18 years, with offshore entities known as global capability centers (GCCs) playing a crucial role in this expansion. These GCCs have contributed significantly to economic growth, job creation, and revenue increases for firms.
According to a Goldman Sachs report titled “India’s rise as the emerging services factory of the world,” revenues from GCCs in India have grown nearly four times at a compound annual growth rate (CAGR) of 11.4% over the past 13 years, reaching $46 billion as of FY23. The number of GCCs has also more than doubled from 700 to 1,580 during the same period, with the sector adding approximately 1.3 million employees at a CAGR of 11.6%. This has led to a total employee headcount of 1.7 million in FY23.
The report forecasts continued strong growth in high-value services in the coming years, driving top-end discretionary consumption and demand for commercial and residential real estate. India’s services exports grew to nearly $340 billion in 2023 at an CAGR of around 11% since 2005, surpassing the growth of goods exports. As a result, India’s share in global services exports increased from under 2% in 2005 to 4.6% in 2023, whereas its share in goods exports only rose from