India Tech Exports Jump 30% After Chat GPT: World Bank
India’s digital story continues to shine brighter with every passing year, and the rise of artificial intelligence (AI) has given it a renewed push. According to the World Bank, India’s computer services exports have grown by an impressive 30% since the launch of OpenAI’s ChatGPT in November 2022. This remarkable growth highlights how India is harnessing the power of AI to strengthen its already booming tech and services sector.
Franziska Ohnsorge, the World Bank’s Chief Economist for the South Asia Region, shared these insights during the Fourth Kautilya Economic Conclave in New Delhi. She noted that India is “well placed to benefit from the advent of AI,” with sectors such as software exports, business process outsourcing (BPO), and digital services rapidly adapting to the new era of automation and machine learning.
AI Sparks Growth in India’s Digital Exports
The data reflects a major transformation. As per the Reserve Bank of India (RBI), India’s export of software services in the April–June 2024 quarter reached $47.32 billion, showing a 13% year-on-year rise. Back in the July–September 2022 quarter—right before ChatGPT’s release—exports were valued at $36.23 billion. This jump of more than $11 billion demonstrates how global demand for Indian IT and AI-related services has skyrocketed.
Experts believe that global companies are increasingly turning to Indian firms to help integrate AI tools, automate business functions, and develop new digital solutions. India’s large pool of skilled engineers, cost efficiency, and growing focus on innovation make it a natural hub for AI-driven services.
BPO Industry Leads the AI Adoption Wave
The BPO sector, one of India’s strongest job creators, is now at the forefront of AI adoption. Ohnsorge highlighted that 12% of job postings in India’s BPO industry since ChatGPT’s release require AI-related skills — double the share before 2022 and three times higher than other industries. This shift shows that companies are eager to blend human intelligence with artificial intelligence to improve productivity and service quality.
The World Bank’s economist also pointed out that India ranked 46th in the Oxford Insights Government AI Readiness Index, putting it ahead of many emerging economies and close to the ranks of advanced nations. This ranking reflects India’s commitment to digital governance, AI research, and technology-driven growth.
Balancing Trade: Services Surplus Offsets Goods Deficit
India’s robust services exports play a key role in balancing the nation’s overall trade position. While the country’s goods trade continues to face a deficit of $122 billion during April–August 2025, a healthy services trade surplus of $81 billion helped soften the blow.
This pattern has been consistent in recent years. For instance, in the same period last year, India’s goods deficit was $121 billion, and the services surplus stood at $68 billion. The growing surplus in services highlights how digital exports—especially in IT and computer services—are becoming the backbone of India’s external trade stability.
Private Investment and FDI: The Mixed Picture
Despite the optimism around AI, Ohnsorge noted that private sector investment in India has yet to fully reflect this technological momentum. Since the pandemic, private capital expenditure has slowed, even though public investment has accelerated. While India’s private investment growth remains slower than its own historical pace, it still outperforms most other emerging markets.
However, Foreign Direct Investment (FDI) remains an area of concern. Even though gross FDI inflows reached a 50-month high of $11.11 billion in July 2025, net FDI stood at just $5.05 billion. This gap exists because foreign companies are repatriating more profits and Indian firms are investing more abroad.
In 2024–25, India recorded one of its lowest net FDI inflows in years — just $959 million, down from $10.15 billion in 2023–24. This was due to a significant rise in overseas investments by Indian firms and large profit withdrawals by foreign investors.
A Future Built on AI and Innovation
Even with these challenges, the broader outlook for India remains strong. The country’s young workforce, expanding startup ecosystem, and growing AI capabilities position it as one of the most promising digital economies in the world.
The World Bank’s findings reinforce the belief that AI is not replacing jobs in India but reshaping them, driving innovation across industries and creating new opportunities in fields such as data analytics, cybersecurity, machine learning, and cloud computing.
As companies around the world embrace automation, India’s service providers are ensuring that the human touch remains central to technology—a balance that has long defined the nation’s success in IT. With AI adoption rising and digital exports surging, India’s economic story appears to be entering an exciting new chapter.
Disclaimer
This article is intended for informational purposes only and should not be considered financial or investment advice. Readers are encouraged to consult certified financial professionals before making any business or investment decisions related to the topics discussed.
