Why services exports aren't a panacea for country's trade deficit problem

The relative stagnation in the net surplus on services trade means that it has started falling short of the net deficit on trade in oil, writes T N Ninan

The 13 per cent fall in the dollar value of the rupee so far this calendar year has focused attention on the country’s growing deficit on trade in goods and services. This deficit has increased dramatically with the rise in crude oil prices. Even after including the inflow of remittances, it is expected to be about 2.6 per cent of the gross domestic product in 2018-19, the highest that it has been since 2012-13. In its response, the government has talked of promoting exports and curbing “non-essential” imports.
 

There is good reason to worry about the stagnation in exports, by