Page 59 - Banking Finance November 2024

FEATURES

has remained an attractive investment destination without Cooperation chapter under the Trade and Economic
using ISDS in its deals. Its model is that of investment Partnership Agreement that India signed with
facilitation with a focus on conflict prevention. The Brazil- Switzerland, Iceland, Norway and Liechtenstein. Its thrust
India Investment Cooperation and Facilitation Treaty is is on investment promotion and cooperation. These
an example. seemingly soft obligations are given teeth through the
institutional mechanism of a sub-committee tasked with
Attracting investment is critical for growth. Trade and engaging the private sector to identify obstacles and
investment agreements signal to businesses that they are opportunities. It also puts in place a consultative
welcome and that their investments will be protected. mechanism for governments to resolve disputes.
Streamlined processes for foreign investment, elimination
of bottlenecks, transparency of rules and procedures, and India also recently signed the Agreement on Clean
access to local infrastructure also help. Economy under the US-led IndoPacific Economic
Framework (IPEF). While its text is yet to be released,
Yet, disputes are possible and effective resolution is fact sheets explaining the IPEF note that its objective is
crucial. The India-Brazil treaty provides for national-level to facilitate investments, project finance, joint projects,
ombudsmen dedicated to supporting each other's workforce development and capacity building for industries.
investors through a collaborative approach to prevent
disputes. Matters that get escalated can be referred to a Each of these offers valuable lessons for the design of
joint committee with representatives of both countries. If investor protection mechanisms as India negotiates trade
dispute prevention fails, then either country can seek and investment deals with the EU, UK and others.
arbitration. Innovative ways to attract and retain foreign investments
are important. But ISDS is not necessary to achieve this
Another model is the Investment Promotion and objective. (Mint)

Exports of software services at $205 billion in 2023-24: RBI

The country’s total exports of software services, including services delivered by foreign affiliates of Indian compa-
nies, increased to $205.2 billion during 202324 from $200.6 billion in the previous fiscal, according to a Reserve Bank
survey.
India's exports of software services (excluding their sales through overseas commercial presence) increased by 2.8
per cent during 202324 to $190.7 billion, according to the data related to the 202324 round of RBI annual survey on
computer software and information technology enabledservices (ITeS) exports.
The US was the major software export destination with a 54 per cent share, followed by Europe (31 per cent share),
where the UK was a major destination country, according to the data.

In the survey, 7,226 software export companies were contacted, of which 2,266 firms, including most of the large
companies, responded. The participating companies together accounted for nearly 89 per cent of total software
services exports.
"Computer services accounted for over twothirds of India's total software services exports during the year; BPO
services remained the dominant component of ITES exports," the survey said, adding private limited companies
recorded higher growth in export of software services when compared to that by public limited companies.

Further, the US dollar remained the principal invoicing currency for India's software exports with a 72 per cent share,
followed by the euro, rupee and pound sterling. In terms of modes of delivery, crossborder supply of software ser-
vices inched up to 83.5 per cent in 202324, whereas the share of overseas commercial presence mode of delivery
declined to 7 per cent from 7.5 per cent in the previous year and 13.7 per cent in 201314. Offsite services accounted
for 90 per cent of the total export of software services. This share has risen from 80 per cent ten years ago.

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