A recent report titled ‘Trade in services for development,’ jointly released by the World Bank and the World Trade Organization (WTO), sheds light on the employment opportunities generated by cross-border services exports in India. The report highlights India’s growing share in global commercial services exports and underscores the significance of these exports in job creation within the services sector.
India’s Increasing Share in Global Services Exports
According to the report, India has made significant progress in expanding its share of global commercial services exports. Between 2005 and 2022, India’s share doubled from 2 percent to 4.4 percent, reflecting the country’s growing presence in the international services market. This trend is paralleled by China, which also experienced a doubling of its share in global commercial services exports during the same period.
Job Creation through Cross-Border Services Exports
The report underscores the substantial impact of cross-border services exports on job creation in India, as well as in South Africa and Turkey. In these countries, employment opportunities directly associated with cross-border services exports contribute to over 10 percent of the total workforce in the services sector. This highlights the significant role that services exports play in job generation and economic growth.
Upskilling and Reskilling for Sustained Growth
To sustain and enhance the positive growth trajectory, the report emphasizes the importance of upskilling and reskilling the workforce in India and the Philippines. As the services sector continues to expand, it is crucial to equip workers with the necessary skills to meet evolving industry demands. By investing in training and development programs, countries can ensure that their workforce remains competitive and adaptable in the global services market.
Investment in Domestic Services Sectors
The report also emphasizes the significance of investing in the development of domestic services sectors, particularly in research and development (R&D). By fostering innovation and improving the quality of services, countries can enhance their competitiveness and attract more foreign investment. A robust domestic services sector contributes to sustainable economic growth and positions countries favorably in the global market.
Medical Tourism and Services Value-added
- The report highlights India’s success in the medical tourism industry, with the country attracting approximately 3.5 million foreign patients over the past decade. India’s reputation for high-quality healthcare services has drawn patients from developed nations like the United Kingdom and the United States, as well as neighboring countries such as Bangladesh, Nepal, and Sri Lanka. Medical tourism has emerged as a significant contributor to India’s services exports.
- Furthermore, the report underscores the importance of services value-added in India’s total exports. In 2018, services value-added accounted for over 51 percent of the country’s total exports. This emphasizes the pivotal role of the services sector in driving economic growth and diversifying India’s export portfolio.
Integration of Foreign Direct Investment (FDI)
The successful integration of foreign direct investment (FDI) in services has played a crucial role in stimulating positive growth dynamics in India. By attracting foreign investment, countries can tap into global manufacturing value chains, boosting economic development and creating employment opportunities. The report recognizes the importance of fostering an environment conducive to FDI inflows and encouraging greater participation in foreign manufacturing value chains.
