Trade in Services
Balance of Payments and Policy Framework
India's trade in services is governed by the General Agreement on Trade in Services (GATS) under the WTO, which covers four modes of supply: cross-border supply (Mode 1), consumption abroad (Mode 2), commercial presence (Mode 3), and movement of natural persons (Mode 4). India's competitive advantage historically lies in Modes 1 and 4 (remote delivery and skilled worker mobility). A shift to product/platform exports would represent a move toward Mode 1 IP-based trade.
- India's services trade surplus consistently offsets its goods trade deficit, keeping the current account deficit (CAD) manageable.
- Services exports: $341 billion in FY2025; services imports: $183 billion — generating a surplus of ~$158 billion.
- The Services Export Promotion Council (SEPC) under the Ministry of Commerce promotes non-IT services exports.
- The National Policy on Software Products 2019 specifically aims to make India a global software product hub, targeting $100 billion in software product revenue by 2025.
● Tracked since March 09, 2026 · last seen April 27, 2026 · updates as the daily brief publishes
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