Business Standard

Exports: As services catch up with goods, should India's focus shift?

The country would need push forward on both for medium-term sustainability, say economists

Photo: Bloomberg

(Photo: Bloomberg)

Indivjal Dhasmana New Delhi
India’s services exports have of late been catching up with merchandise export. In January this year, the two were almost equalled at over $32 billion each.

If the trend persists, this may give some credence to Reserve Bank of India (RBI) Governor Raghuram Rajan’s theory that the country should focus on the growth of services export and not mimic China to become a manufacturing giant – an attack on the government's production-linked incentive (PLI) scheme.

However, the question is: will this trend persist once external conditions normalise?

Merchandise exports declined for the second straight month in January year-on-year due to

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Feb 16 2023 | 4:22 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to