13.05.08 Services Trade and IT-enabled Services: A Case Study of India
NUPI Working Paper 733 | 23 pages.
Services trade has assumed considerable significance for the Indian economy. The paper looks at the trade in IT-enabled outsourcing services from India and examines the strengths and weaknesses of India as an outsourcing location.
>> Summary
Services trade has assumed considerable significance for the Indian economy. The role of IT and IT-enabled services (ITES) is particularly worth mentioning in this context. The growth of this sector has not only helped to improve the current account balance of India, but also generated income and employment. This paper anlyses data on services trade provided by IMF for different countries across the globe and examines India’s position in relation to other countries. In particular, the paper compares India’s exports of IT and ITES (clubbed together in IMF classification under other business and computer services categories) vis-à-vis some of its competitors in this field as far as international trade is concerned. The paper then looks at the trade in IT-enabled outsourcing services from India and examines the strengths and weaknesses of India as an outsourcing location.
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