Analysing India’s Trade Competitiveness in Commercial Services with Developed Economies
DOI:
https://doi.org/10.63682/jns.v13i1.9623Abstract
India's economy depends heavily on global trade in services, which boosts GDP, creates jobs, and generates foreign exchange revenues. India is now a significant exporter of a wide range of services, including information technology (IT), business process outsourcing (BPO), software development, tourism, finance, and engineering, thanks to globalization and technological advancements. Since the economic reforms of the 1990s, the services sector has been a major driver of India's economic expansion. This study investigates the growth, composition, and direction of India's services trade, as well as its revealed comparative advantage (RCA) and trade intensity index. The findings indicate that India's service exports experienced strong growth from 2005 to 2022, particularly in travel and computer services.
The results show that, notwithstanding a minor decrease in transportation and other business activities, India's service exports grew significantly between 2005 and 2022, especially in travel and computer services. India has significant commercial benefits with wealthy nations like the United States and the United Kingdom. As a result of improved worldwide connectedness, service imports have also expanded, namely in the areas of computer, travel, and transportation services. The study suggests that India should continue to diversify its service exports while also strengthening trade links with wealthy economies. It advocates boosting industries in which India has a distinct edge, upgrading weaker ones, and adopting new technology and ideas..
Downloads
References
Acharya, S. (2007, January). India’s growth: Past performance and future prospects. In paper for presentation at the Eighth Annual Global Development Conference of the Global Development Network.
Banerjee, P. K. (2003). Performance Evaluation of Indian Factoring Business: A Study of SBI Factors and Commercial Services Limited, and Canbank Factors Limited. Vision, 7(1), 55-68.
Banga, R. (2005). Critical issues in India's service-led growth (No. 171). Working paper.
Benz, S., Khanna, A., & Nordås, H. K. (2017). Services and performance of the Indian economy: analysis and policy options.
Burange, L. G., Chaddha, S. J., & Kapoor, P. (2010). India's trade in services. The Indian Economic Journal, 58(2), 44-62.
Chanda, R., and Gupta, P., (2011). Service Sector Liberalisation in India: Key Lessons and Challenges. South African Institute of International Affairs EconomicDiplomacy Programme, Occasional paper No. 88.
Dash, R. K., & Parida, P. C. (2012). Services trade and economic growth in India: an analysis in the post-reform period. International Journal of Economics and Business Research, 4(3), 326-345.
Dash, R. K., & Parida, P. C. (2013). FDI, services trade and economic growth in India: empirical evidence on causal links. Empirical economics, 45(1), 217-238.
De, P. (2013). Assessing barriers to trade in services in India: an empirical investigation. Journal of Economic Integration, 28(1). 108-143.
Gordon, J., & Gupta, P. (2005). Understanding India’s services revolution. In India’s and China’s recent experience with reform and growth (pp. 229-263). London: Palgrave Macmillan UK.
Krueger, A. O. (2008). The role of trade and international economic policy in Indian economic performance. Asian Economic Policy Review, 3(2), 266-285.
Maiti, M. (2018). India’s services: sector, trade and employment. International Journal of Law and Management, 60(6), 1377-1392.
Maity, B., Baidya, M., Palamalai, S., & Dev, S. M. (2023). Forecasting Growth Rates of India’s Net Commercial Services: An Econometric Approach. Journal of Services Research, 23 (2).
Mukherjee, A., and Goswami, R., (2011), ‘India-EU BTIA: Implications for Services Sector,’ Journal of Indo-European Business Studies, 1(1), 2-22
Nath, H. K., & Goswami, B. (2018). India’s comparative advantages in services trade. Eurasian Economic Review, 8, 323-342.
NICHIT, S. V. (2017). India’s Economic Performance of Agriculture, Industry & Services. Indian Economy Indian Economy–Prospects and Future.
Raghuramapatruni, R., & Surya Chaitanya, R. V. (2020). An appraisal of the impact of international trade on economic growth of India-through the ARDL approach.
Sahoo, P., & Dash, R. K. (2017). What drives India's surge in service exports? The World Economy, 40(2), 439-461.
Terzi, N. (2010). The Role of Trade Liberalization in Services in developing countries. Marmara Universities, 28(2), 121-133.
Thomas, M. P. (2019). Impact of services trade on economic growth and current account balance: Evidence from India. The Journal of International Trade & Economic Development, 28(3), 331-347..
-.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
Terms:
- Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
