• Trade in services
• Trade in financial services
• GATS
• Trade in health services

Trade in services

Services have become the main source of growth in even the lowest income developing countries.
Therefore, this paper reviews India’s experience with services to understand how service sector liberalisation can generate welfare gains and employment in developing countries. The paper notably revises:

• the evolution of trade in services
• the importance of services for the Indian economy
• GATS mandated liberalisation
  

Liberalised services have contributed both directly and indirectly to Indian growth:

• as a driving factor behind the emergence of new skilled job opportunities
• as inputs into productive activities
• by offering cheaper final services, thereby increasing social welfare
• by changing consumer's expectations even at the lowest strata of the economy
  

The fear of job loss should therefore not prevent service sector liberalisation. Instead, an open services regime could help sustaining growth, competitiveness and employment generation while simultaneously generating consumer welfare gains.

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