India’s services exports have experienced a rapid growth over the past 18 years, thanks in large part to the rise of global capability centers (GCCs). These GCCs have played a crucial role in this expansion, boosting real estate and contributing to economic growth while creating jobs and increasing revenues for firms.
According to a report by Goldman Sachs titled “India’s rise as the emerging services factory of the world,” revenues of GCCs in India have grown nearly 4x 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 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 brought the total employee headcount to 1.7 million in FY23.
The report also forecasts 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 a 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