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328 Economic Survey 2021-22

9.38 Out of the total US$ 149.1 billion in exports of the IT-BPM sector (excluding hardware and
e-commerce) in 2020-21, Banking, Financial services and Insurance (BFSI) contributed US$
61.4 billion, accounting for over 41 per cent of the exports. Hi-tech/Telecom and Manufacturing
services contributed US$ 26.3 billion and US$ 24.3 billion, accounting for a share of 17.65 and
16.28 per cent respectively (Figure 6). All the three sub-sectors witnessed a marginal increase
in export revenues in 2020-21 YoY, with BFSI growing by 3 per cent, Hi-tech/Telecom services
by 2 per cent and Manufacturing services by 1 per cent.

Figure 6: Sector wise break up of Indian IT BPM Export Revenues

(excluding hardware & e-commerce) (US$ billion)

36.8 37.2
34.0
31.4
29.2 24.0 24.3
22.2
20.6
19.0 25.9 26.3
24.0
20.5 22.1
47.3 51.0 55.3 59.6 61.4

2016-17 2017-18 2018-19 2019-20 2020-21 E
BFSI Hi-tech/Telecom Manufacturing Others

Source: NASSCOM. Note: E: Estimate.
Note: Others include emerging sectors like Retail, Healthcare, Media etc.

Distribution of export revenues
9.39 United States remained the biggest source of exports revenues amounting US$ 92.1 billion
in 2020-21(Figure 7). This accounts for about 62 per cent of total IT-BPM exports (excluding
hardware and e-commerce). This is followed by UK, which is second largest export market for
IT-BPM services with a share of around 17 per cent. The revenue from exports to UK amounted
to US$ 25.2 billion in 2020-21. Europe (excluding UK) and Asia-Pacific account for 11.5 per
cent and 7.7 per cent respectively of the export earnings of India.

Figure 7: Geographic Break-up of India’s IT-BPM Exports
(excluding hardware & e-commerce) (US $ billion)

3.3
3.2
2.9
11.1 11.4
2.5 2.7 10.2 16.6 17.2
9.4 15.4
8.8 14.2 25.2
13.2 22.9 24.7
21.2
19.7

71.9 77.5 84.0 90.7 92.1

2016-17 2017-18 2018-19 2019-20 2020-21 E
US UK Europe (Excluding UK) APAC RoW

Source: NASSCOM. Note: E: Estimate.