Export-led growth to spur business

Within goods exports, raising the share of manufactured exports and accelerating India’s move up the value chain for goods is reliant on structural reforms that invigorate the manufacturing sector. Services exports should continue to benefit from favourable global trends. But greater investment in human capital and trade liberalisation could lead to another phase of more rapid growth. 

However, as the importance of global trade in goods as a driver of growth is beginning to wane, India appears particularly well-placed with a rising share of global trade in services. Over the long run, India’s services exports are expected to continue to benefit from technology advances, continued outsourcing and recovering goods trade. And gains could multiply if adequate investment is made in human capital and trade liberalisation picks pace.  

While India runs a trade deficit in goods, it is a net exporter of services. India’s services export growth has outpaced not only goods export growth but also global services export growth.