Services Trade : India’s Contribution to Regional Trading Arrangements Amidst COVID-19

Abstract

The services trade has gained momentum in the recent past. Previously considered non-tradable, with the implementation of trade policies that cater to the liberalization of services, this sector has evolved to be one of the most dynamic sectors in the world. However, very little attention has been paid to assess the services trade contributions of a developing economy like India to regional trading arrangements. This study attempted to bridge this gap with the help of secondary data on services trade. It analyzed India’s services trade contributions to South Asian Association for Regional Cooperation (SAARC), Asia-Pacific Trade Agreement (APTA), and Brazil, Russia, India, China, and South Africa (BRICS), especially before and during the pandemic, and the results showed that the country made significant contributions both globally and regionally. Although a decline could be seen in India’s contributions in the global sphere due to the immediate shock of the COVID-19 pandemic, the country’s services trade was still increasing at the regional level. Throughout 2011 – 2020, almost 80 – 90% of the contributions within SAARC were attributable to India. Similar was the case with APTA and BRICS, where India secured the second position, closely following China.