Services trade is growing faster than goods
Distance matters less, weakening the traditional “gravity model”
Transport and travel have declined
IT, finance, and business services now drive global trade
Digital platforms and remote work make services easily tradable across borders
Regulations—not tariffs—limit services trade. Data rules, licensing, and compliance add complexity
Services exports hit $387.5 bn in FY25. But reliance on US and Europe raises risks
Invest in AI, boost digital infrastructure, and ease regulatory barriers
Services growth is strong, but merchandise exports remain key for jobs