Growth in services exports essential to reduce concentration risk

India must broaden its services export base beyond IT and consulting to reduce concentration risks, boost competitiveness, create jobs and sustain growth amid global protectionism, say economists

Global services exports grew at an average 6.1 per cent annually from 2014 to reach $8.6 trillion in 2024. In the same period, global goods exports rose at a more sedate 2.9 per cent to $24.5 trillion. The upshot of that acceleration? The proportion of services in total global exports climbed up a good 500 basis points to 27 per cent, spurring job creation, especially in developing economies.

 

According to a 2022 World Bank blog, services exports created 16 million new jobs across a sample of major developing economies between 2005 and 2018, while those supported by goods exports declined