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Growth and Instability in India's Service Exports:A Policy Period Analysis


Affiliations
1 Research Scholar, Department of Commerce, University of Delhi, India
2 Professor, Department of Commerce, University of Delhi, India
 

After economic reforms of 1991, the service sector has become important for economic growth in India. International trade in services has accounted for 13.90 per cent of GDP as highest value during 2006. Trade in services also has been positively contributing towards trade balance during the last three decades. In 2017-18, service trade positively contributed $111.319 billion against total trade deficit of $160.036 billion. The growth of Indian economy is positively linked with the growth in trade in services. Therefore, trade in services has become an important attribute to economic growth. In this context, the present study has primarily attempted to measure growth and instability of the service export. It also analyzes the impact of reforms on growth as well as on instability of service export. The study period is sub divided into two parts pre and post reform period. The separate growth rates are measured and compared for pre and post reform period. The service trade data of different categories of services are included from 1980 to 2013 in accordance with BPM5. The samples of services include aggregate service export, commercial services, travel, transportation and other commercial services. The overall results indicate that there is significant difference in growth and instability for pre and post reform periods. Further, the trend in instability of service export is also found significant over the study period for pre and post reform period separately.

Keywords

Service, Economic Growth, Instability, Pre and Post Reform Period.
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  • Growth and Instability in India's Service Exports:A Policy Period Analysis

Abstract Views: 342  |  PDF Views: 288

Authors

Anurag Maurya
Research Scholar, Department of Commerce, University of Delhi, India
Madan Lal
Professor, Department of Commerce, University of Delhi, India

Abstract


After economic reforms of 1991, the service sector has become important for economic growth in India. International trade in services has accounted for 13.90 per cent of GDP as highest value during 2006. Trade in services also has been positively contributing towards trade balance during the last three decades. In 2017-18, service trade positively contributed $111.319 billion against total trade deficit of $160.036 billion. The growth of Indian economy is positively linked with the growth in trade in services. Therefore, trade in services has become an important attribute to economic growth. In this context, the present study has primarily attempted to measure growth and instability of the service export. It also analyzes the impact of reforms on growth as well as on instability of service export. The study period is sub divided into two parts pre and post reform period. The separate growth rates are measured and compared for pre and post reform period. The service trade data of different categories of services are included from 1980 to 2013 in accordance with BPM5. The samples of services include aggregate service export, commercial services, travel, transportation and other commercial services. The overall results indicate that there is significant difference in growth and instability for pre and post reform periods. Further, the trend in instability of service export is also found significant over the study period for pre and post reform period separately.

Keywords


Service, Economic Growth, Instability, Pre and Post Reform Period.

References





DOI: https://doi.org/10.20968/rpm%2F2019%2Fv17%2Fi1%2F145654