Introduction

World Trade in Services

Trade in services records the value of services exchanged between residents and non-residents of
an economy, including services provided through foreign affiliates established abroad. This
indicator is measured in million USD and percentage of GDP for exports, imports and net trade.
Trade in services drives the exchange of ideas, know-how and technology, although it is often
restricted by barriers such as domestic regulations. 
Traditionally the countries, both developed and less developed, specialized in the exchange of
goods. In the recent decades, the focus has shifted by a significant extent from the facilitation of
trade in goods to the trade in services. According to UNDP, the international trade in services
increased, by an average 12 percent per year between 1970 and 1990.

Between 1990 and 2000, it rose by more than three times, from US $ 800 billion in 1990 to US $
2500 billion in 2000. In 2013, out of world GDP at current prices at U.S. $ 75.6 trillion, the share
of services stood at 66 percent i.e., 49.9 trillion.

WTO Trade Categories of Service

According to the World Trade Organization (WTO), there are three broad categories of
commercial services, namely transport, travel and other commercial service. A more detailed
classification of services made by WTO includes transportation services, travel services, other
commercial services, communication services, construction – services, insurance services,
financial services, computer and information services, other business services and personal,
cultural and recreation services.

India Trade in Services & % of GDP

India’s services trade has been a major driver of its exports over the past two decades. The
country has emerged among the fastest growing nations in global services trade.
This sector has not only attracted significant foreign investment flows but also contributed
significantly to exports as well as provided large-scale employment.
India’s services sector covers a wide variety of activities such as trade, hotels and restaurants,
transport, storage and communication, financing, insurance, real estate, business services,
community, social and personal services, and services associated with construction.
Trade in services is the sum of service exports and imports divided by the value of GDP, all in current
U.S. dollars.

TODO

https://www.indexmundi.com/facts/india/trade-in-services
Graph for last 20 Years to be plotted from above url data
Import of Service
Export of Service
Balance of Trade
Analysis
Recommendations

References –
https://www.oecd.org/india/
https://data.oecd.org/trade/trade-in-services.htm

2004-09 Trade Policies

http://dgftcom.nic.in/exim/2000/policy/ftp-plcontents2008.pdf

To promote modernization of our manufacturing and services exports, the import duty under the EPCG
scheme is being reduced from 5% to 3%.
Refund of tax on a large number of services relating to exports has already been announced by the
Government. A few remaining issues regarding refund of service tax on exports would also be resolved
soon
Interest relief already granted for sectors affected adversely by the appreciation of the rupee is being
extended for one more year.