India is turning into an export hub especially of services. The export-to-GDP ratio has risen fast since the early 1990s and now stands broadly at par with China.

The large share of services in total exports however stands out: while India has performed very well in exporting IT services, exports of goods have lagged behind. The performance of services exports has been stellar. India’s share of world services trade more than quadrupled from 0.5 per cent in 1995 to 3.5 per cent in 2018. India has become a major exporter of business services, notably in the Information, Communication and Technology (ICT) sector.

Medical and wellness tourism is also performing well, with patients seeking high-quality medical treatment at competitive prices in some Indian hospitals.Exports of goods have displayed mixed results. India has gained market shares for some skill- and capital-intensive goods, including pharmaceuticals and refined oil.

However, performance in exporting textiles, leather and agricultural products has been disappointing. India’s trade prospects are bright as it has specialised in sectors which will likely be in high demand in the future (e.g. ICT services, pharmaceuticals and medical devices) and in fast growing destinations (with a large share of its exports to emerging market economies).