‘Trade in Services for Development’ Report

India has witnessed a remarkable growth in its share of global commercial services exports over the years. As a testament to its economic progress, the World Bank and World Trade Organization (WTO) released a report titled ‘Trade in services for development,’ shedding light on India’s expanding role in the global services sector.  

India’s Share of Global Commercial Services Exports 

In 2005, India’s share of global commercial services exports stood at 2%. However, by 2022, this figure had doubled to 4.4%. This remarkable growth indicates India’s increasing participation and competitiveness in the international services market. 

Leading Services Exporters and Importers 

The report identifies four economies as leading services exporters and importers: China, Hong Kong (China), Singapore, and India. These nations have demonstrated their prowess in service-oriented industries, contributing significantly to global trade. 

Cross-Border Services and Job Opportunities 

In India, South Africa, and Türkiye, cross-border services exports have played a crucial role in job creation. More than 10% of total services sector jobs in these countries are directly linked to cross-border services exports. This highlights the importance of international trade in driving employment opportunities and economic growth. 

Medical Tourism in India 

India has emerged as a popular destination for medical travel, attracting foreign patients from various countries, including the United Kingdom and the United States. Seeking affordable yet high-quality treatment, patients from developed and developing nations alike opt for India’s healthcare services. 

Services Value-Added and Exports 

Services value-added accounted for over 51% of India’s total exports in 2018. This emphasizes the significance of the services sector in contributing to India’s overall economic growth. The report suggests that investments in research and development (R&D) are crucial for India to remain competitive and progress up the value chain. 

The Digital Transformation 

The advent of information and communications technologies (ICT) has revolutionized the services sector. Between 2005 and 2022, global commercial services exports nearly tripled, with digitally delivered services experiencing a four-fold increase. In 2022, digitally delivered services exports were valued at a staggering $3.82 trillion, constituting 54% of total global services exports. 

Trade in Intermediate Services 

The report highlights the value of trade in intermediate services, which are inputs in the production of other goods and services. This segment accounts for an impressive $3.95 trillion, more than double the worth of final services exports. The significance of intermediate services underscores their crucial role in global value chains and economic integration. 

Month: Current Affairs - July, 2023

Category: Reports & Indexes Current Affairs