‘Quiet change in services boost for Re’

Mumbai: RBI deputy governor Michael Patra has said that a quiet — but fundamental — transformation is taking place in the services sector that is providing support to the rupee.
“The most striking transformation is occurring in India’s exports of services, which have demonstrated pandemic-proofing, rising by above 25% per annum since 2020, and providing valuable support to the viability of the external sector,” said Patra.
While software and business services are the main drivers of this robust performance, advances in IT have made services more tradable and increasingly unbundled. “A single service activity within the global supply chain can now be fragmented and undertaken separately at different geographical locations,” Patra said.