International Journal of Foreign Trade and International Business
2020, Vol. 2, Issue 1, Part A
Trends and revealed comparative advantage of ICT services exports from India (2005 - 2018)
Information and communications technology (ICT) services have not only been a vital contributor to the economic growth and development of India, it has also been a crucial category in the service exports bundle of India. This paper investigates the trends, growth, and revealed comparative advantage of ICT service export of India for the period 2005-2018. Our analysis, based on the UNCTAD data, exposed that the ICT service export of India was growing slightly faster than that of the rest of the world; however, its rate of growth was decelerating over the years. The share of ICT services in the total service exports and in the total exports of India was around four-times and six-times higher than that of the world average, respectively. The estimated revealed comparative advantage (RCA) index showed that India had very strong comparative advantage in the production and exports of ICT services during the study period; and comparative advantage of the country was around seven times higher than of the world average. Nevertheless, the intensity of the RCA of the country in the ICT trade has been showing a declining trend over the years. This cautions that if appropriate policies are not formulated and implemented in time, the comparative of the country in this product may not last for a long time.