聯(lián)合國(guó)亞太經(jīng)社會(huì)（UNESCAP）：印度與歐盟的自由貿(mào)易協(xié)定：服務(wù)業(yè)的機(jī)遇與挑戰(zhàn)

No.232|2024

ESCAP

EconomicandSocialCommissionforAsiaandthePacific

India'sFTAwiththeEU:

Opportunitiesand

ChallengesinServices

Sector

AnkitaDash

AyonaBhattacharjee

ASIA-PACIFICRESEARCHANDTRAININGNETWORKONTRADE

WorkingPaper

TheAsia-PacificResearchandTrainingNetworkonTrade(ARTNeT)isanopenregionalnetworkofresearchandacademicinstitutionsspecializingininternationaltradepolicyandfacilitationissues.ESCAP,WTOandUNCTAD,askeycorenetworkpartners,andanumberofbilateraldevelopmentpartners,providesubstantiveand/orfinancialsupporttothenetwork.TheTrade,InvestmentandInnovationDivisionofESCAP,theregionalbranchoftheUnitedNationsforAsiaandthePacific,providestheSecretariatofthenetworkandadirectregionallinktotradepolicymakersandotherinternationalorganizations.

TheARTNeTWorkingPaperSeriesdisseminatesthefindingsofworkinprogresstoencouragetheexchangeofideasabouttradeissues.Anobjectiveoftheseriesistopublishthefindingsquickly,evenifthepresentationsarelessthanfullypolished.ARTNeTWorkingPapersareavailableonlineat.AllmaterialintheWorkingPapersmaybefreelyquotedorreprinted,butacknowledgmentisrequestedtogetherwithacopyofthepublicationcontainingthequotationorreprint.TheuseoftheWorkingPapersforanycommercialpurpose,includingresale,isprohibited.

Disclaimer:

ThedesignationsemployedandthepresentationofthematerialinthisWorkingPaperdonotimplytheexpressionofanyopinionwhatsoeveronthepartoftheSecretariatoftheUnitedNationsconcerningthelegalstatusofanycountry,territory,cityorarea,orofitsauthorities,orconcerningthedelimitationofitsfrontiersorboundaries.Wherethedesignation“countryorarea”appears,itcoverscountries,territories,citiesorareas.Bibliographicalandotherreferenceshave,whereverpossible,beenverified.TheUnitedNationsbearsnoresponsibilityfortheavailabilityorfunctioningofURLs.Theviewsexpressedinthispublicationarethoseoftheauthor(s)anddonotnecessarilyreflecttheviewsoftheUnitedNations.Theopinions,figuresandestimatessetforthinthispublicationaretheresponsibilityoftheauthor(s)andshouldnotnecessarilybeconsideredasreflectingtheviewsorcarryingtheendorsementoftheUnitedNations.Anyerrorsaretheresponsibilityoftheauthor(s).ThementionoffirmnamesandcommercialproductsdoesnotimplytheendorsementoftheUnitedNations.

?ARTNeT2024

iii

ASIA-PACIFICRESEARCHANDTRAININGNETWORKONTRADE

WORKINGPAPER

India'sFTAwiththeEU:OpportunitiesandChallengesin

ServicesSector1

AnkitaDash2,AyonaBhattacharjee3

Pleasecitethispaperas:

AntikaDashandAyonaBhattacharjee(2024)."India'sFTAwiththeEU:OpportunitiesandChallengesinServicesSector',ARTNeTWorkingPaperSeriesNo.232,

February2024,Bangkok,ESCAP

Availableat

1ThisstudywascommissionedbyUNESCAP.ExtensiveresearchsupportwasprovidedbyMs.Sudeshna

Ghosh.Theauthorsarealsogratefultoallthosewhoprovidedinsightsforthestudybasedontheirexperience.

2Professor,IndianInstituteofManagementNagpur,India,e-mail:

3Professor,IntemationalManagementInstituteNewDelhi,India,email:

iv

Abstract

TradeinserviceshasbeenofspecialinteresttobothIndiaandtheEUasservicesareamajorcontributortoGDPandtradeflowsinthetwoeconomies.SteadilyrisingservicestradebetweenIndiaandtheEUis,however,characterizedbycertainpeculiarities,whichareworthnoticing.Theseincludedifferencesacrosssub-sectors,tradingpartners,modesoftradeandregulatorybarriers.Thesemakeitworthexploringthepotentialcostsandbenefitsofincreasingtradeflowsthroughtradeagreementsevenfurtherwhilealsodiversifyingthesub-sectorsandthedestinationcountries.Thisishighlyrelevantasafteragapofnineyears,in2022,IndiaandtheEUhaverecentlyrelaunchedtalksforanall-inclusivefreetradeagreement(FTA)in2022,tocatertotheircommoninterestsconcerningtradeinservices.

Againstthisbackground,thisstudyusesbothquantitativeandqualitativeapproachtoexploretheopportunitiesandchallengesforIndiaunderaprobablyIndia-EUFTA.Usingdisaggregateddataover2010-2021,weconstructdifferenttradeindicators,toidentifythesepotentialmarketsandservices,prospectsofwhichcanbefurtherexploredintheIndia-EUFTA.LegaltextanalysisofanalogousFTAsthatEUandIndiahavesignedwithdevelopinganddevelopedpartnersrespectivelywasalsoundertakentobetterunderstandthestyletothenegotiations,languageoflegaltextsandcommissions/restrictionsofferedbythesecountriestotheirrespectivepartners.

TheanalysisdiscoverstheservicessectorsinwhichIndiahasstrategicexportinterestintheEUregion,namely,TechnicalandTraderelatedservices,ResearchandDevelopmentrelatedservicesandTransportservices.ThemajorsectorswhichneedcarefulnegotiationssuchthatIndiacanimproveitsservicesbalanceandputtogooduseitsbilateralRCAareComputerandInformationservices,ProfessionalandManagementservicesandTravel.Chargesforuseofintellectualproperty,TelecommunicationandInsuranceandPensionservicescouldbeotherareasforconsiderationwhichatpresentdonotexperiencesignificantesportsfromIndiatotheEUbuthavethepotentialforsignificantgainsunderaliberalizedregime.

ThebroadscopeofthisstudyistoanalyzetheopportunitiesandchallengesforIndia’sservicesindustryunderanFTAbetweenIndiaandtheEUandprovidesuggestionsforIndia’snegotiationapproach.

Keywords:Tradeinservices,freetradeagreement,EuropeanUnion,AsiaPacific,technicalandtraderelatedservices

JELCodes:F13,F14,F15

v

TableofContents

Abstract iv

1.Introduction 1

2.BackgroundandPreliminaryAnalysis 3

2.1.TradeinServices–IndiaandtheEU 3

2.1.1.TheEU’sServicesTradeflows 3

2.1.2.India’sServicesTradeflows 8

2.1.3.India-EUServicesTradeflows 9

2.2.Revealedcomparativeadvantage(RCAs)forservicessubsectors 13

2.2.1RCAsforEUservicesexports 13

2.2.2RCAsforIndia’sservicesexports 16

2.2.3BRCAsofIndiaandEUservicestrade 17

3.QuantitativeAnalysis 23

3.2.Methodology&Data 23

3.3.EmpiricalResults 27

3.2.1FullSampleResults 27

3.2.2Indiaasthesource/destinationcountry 34

3.4.Discussion 36

4.AnalysisofLegalTextofEU’sandIndia’sFTAs 38

4.1ApproachestoNegotiations 39

4.2.TheEU’sFTAs 40

4.2.1EUSingaporeFTA 41

CommitmentsoftheEU 41

CommitmentsofSingapore 42

4.2.2EUVietnamFTA 42

.CommitmentsoftheEU 44

vi

.CommitmentsofVietnam 45

4.2.3EUJapanEconomicPartnershipAgreement(EPA) 46

.CommitmentsoftheEU 46

.CommitmentsofJapan 47

4.2.4.EUCanadaComprehensiveEconomicTradeAgreement(CETA) 48

.CommitmentsoftheEU 52

CommitmentsofCanada 52

4.2.5.SummaryofEU’sFTAs 52

4.3India’sFTAs 55

4.3.1 IndiaAustraliaEconomicCooperationandTradeAgreement

(IAECTA) 55

CommitmentsofIndia 55

CommitmentsofAustralia 55

4.4KeyInsightsforIndia 57

4.5RecentdevelopmentsinservicesnegotiationsbetweenIndiaandtheEU 59

5.ConclusionandthePathAhead 60

6.References 67

7.Appendix 69

8.AppendixA 70

9.AppendixB 86

10.AnnexureTables 104

Table1:Servicessub-sectorwisetopExporterEUmemberstates 6

Table2:Servicessub-sectorwisetopImporterEUmemberstates 7

Table3:Subsector-wisetopexporter&importerEUmemberstatesforIndia 12

Table4:ListoftheEUmemberstatesbasedonRCAindicesandtradeflows 13

vii

Table5:No.ofEUmemberstateswithIndia’scomparativeadvantage/disadvantage

18

Table6:AnalysisofIndia’sBRCAwiththeEUmemberstates 19

Table7:ComparingIndia'sBRCAwithEUMemberstatesBRCAs 21

Table8:Descriptivestatisticsofservicessubsector-wiseimports(Fullsample) 27

Table9:PooledOLS(POLS)andPPMLregressionresultswithNTMvariables 28

Table10:ExpectedgainsorlossesintradebasedforincrementalchangesinPMR32

Table11:ExpectedgainsorlossesinIndia’sexportsbasedonincrementalchanges

inIndia’sPMRmeasures 34

Table12:ExpectedgainsorlossesinIndia’simportsbasedonincrementalchanges

inIndia’sPMRmeasures 35

Table13:Sub-sectorwiseexpectedgainsforIndia’stradewithEUthroughtheFTA

37

Table14:TheEU'sSectorspecificlistofreservationsinEUJapanEPA 46

Table15:Keysectors/subsectorshavingreservationsinEUCanadaCETA 49

Table16:Summaryoftopicsrelevanttoservicesspecificallycoveredinchaptersof

selecttradeagreementsoftheEU 52

Table17:EU'scommitmentsacrosspartnersindifferentmodes(SelectSectors) 54

Figure1:TheEuropeanUnion’sservicestradeflowswiththeworld 4

Figure2:EU'sCumulativeExportsandImports(2010-21)toWorld 5

Figure3:India’sservicestradeflowswiththeworld 8

Figure4:Topservicessub-sectorsofIndia’sexportsandimportstotheworld 9

Figure5:BilateralTradebetweenIndiaandtheEU 10

Figure6:India’stopexportersandimportersofservicessectorintheEUduring

2010-21 10

Figure7:Sub-sectoralcompositionofIndianservicestradewiththeEU 11

Figure8:EUmemberstates’trendsinRCAsacrossservicessubsectors 15

viii

Figure9:RCAServicesforservicessubsectorsinIndia 17

FigureA.1:RCAServicesforTopExportersandImportersofEUandIndia 102

FigureA.2:RCAtrendsacrosssubsectorsofEUmemberstates 103

ix

ListofAcronyms

BRCABilateralRevealedComparativeAdvantage

CAGRCompoundannualgrowthrate

CETAComprehensiveEconomicandTradeAgreement

ECEuropeanCommission

EPAEconomicPartnershipAgreement

EUEuropeanUnion

FDIForeignDirectInvestment

FEFixedEffects

FTA

FreeTradeAgreement

OrganisationforEconomicCo-operationand

OECD

Development

OLSOrdinaryLeastSquares

POLSPooledOrdinaryLeastSquares

PPMLPoissonPseudoMaximumLikelihoodEstimation

PMRProductMarketRegulation

R&DResearchandDevelopment

RCARevealedComparativeAdvantage

SMESmallandmedium-sizedenterprises

UKUnitedKingdom

USUnitedStates

1

1.Introduction

Theservicessectorcurrentlyaccountsforaroundthree-fourthofGDPindevelopedandaroundhalfofGDPindevelopingeconomies.4Therapidexpansionofthissectoracrosscountriesisalsoinlinewiththeirrisingtradeflows.Infact,tradeinserviceshasbeengrowingfasterthantradeingoods.5ThoughthisrisingtrendwassuddenlydisruptedbytheCovid-19pandemic,resultinginatemporarydeclineinservicestrade,thetrendstartedtoreversefromtheyear2021.ItispredictedthatglobalservicesexportsmaysoonattainanewrecordhighofUS$7trillion.6Withrapidadvancementsintechnology,theservicessectorandtradeinservicesarepredictedtogrowfastunlessinterceptedbyrestrictivetradepolicies.Unliketariffbarriersappliedtogoodstrade,policybarriersinservicestradeareregulatoryinnature,makingthemevenmorecomplextoquantifyandeliminate.Overcomingthesepolicyhurdlesthroughtradeagreementsmaybeawayforwardwhichcanbringforththetruepotentialofservicessectorglobalization.Forinstance,thecurrentnegotiationsonanagreementbetweenIndiaandtheEuropeanUnion(EU)7isstatedtohaveimmensepotentialforservicessectorgrowthinboththeeconomies.FromIndia’sperspective,theagreementcanfacilitateIndia’sattempttoestablishitselfasaregionalandagloballeaderofservicestrade.Ontheotherhand,theagreementmayallowtheEUfirmstoaccessamarketofoverabillionpeople.Also,tradeinservicesisofspecialinteresttobothIndiaandtheEUasservicesareamajorcontributortoGDPinboththeeconomies.TheeffectsofthisFreeTradeAgreement(FTA)arethusworthanalysing.

Currently,theEUisIndia’sthirdlargesttradingpartner,accountingforaround11%oftotalIndiantrade.AspertheEuropeanCommission,theEUisalsooneofthelargestsourcesofForeignDirectInvestments(FDI)inIndiawithFDIfigurestouching€87.3bnin2020,upfrom€63.7bnin2017.ServicestradebetweenIndiaandtheEUexhibitcertainpeculiartraits.First,servicestradeisunevenlydistributedacrosstheEUmembercountries.BroadtradepatternsoverthepastdecadeseemtosuggestthatIndia’stoptradingpartnersforbothexportsandimportshavebeenGermanyandIreland(Poitiers,Chowdhry,&GARCíA-HERRERO,2021)whilethereisimmensescopeforIndiatodiversifyitstradeinservicestoothercountrieswithintheEUregion.Second,servicestradebetweenIndiaandtheEUisdominatedbycertainsub-sectorssuchastransport,telecom/IT,travelandotherbusinessservices.In2021,thesesectorsaccountedformorethan80%oftheEU’sservicesexportstoIndiaandmorethan90%oftheEU’sservicesimportsfromIndia.Stronggrowthinbilateraltradeinthesekeysectorshasbeenspecificallyreportedduring2010-2019.Forinstance,theEUimportsofotherbusinessservicesfromIndiadoubledfromUSD5.29billiontoUSD

4Source:Services,valueadded(%ofGDP)onWorldBankDatabase:

/indicator/NV.SRV.TOTL.ZS

5Source:

/english/thewto

_e/20y_e/services_brochure2015_e.pdf

6Source:

7Source:India-EUconclude1stroundofnegotiationsforIndia-EUTradeandInvestmentAgreements:

.in/PressReleaseIframePage.aspx?PRID=1838839

2

11.22billionduringthistime.Incontrast,tradeflowsinfinancialandmanufacturing-relatedservicesremainedlowandwithoutsignificantfluctuations(Poitiers,Chowdhry,&GARCíA-HERRERO,2021).Third,thereisdifferentialfocusonmodesofservicestradebythetradingpartners.Indiaseeksgreaterliberalizationofcrossborderdeliveryofservices(Mode1oftradeinservices)andservicesdeliveredviathemovementofserviceproviders(Mode4oftradeinservices),particularlyintermsofallowingskilledIndianprofessionalstotemporarilyresideandworkintheEUandprovideeasieraccessforitsstudentstothememberstates.FourthisthepresenceofregulatorybarriersinservicestradebetweenIndiaandtheEU.Forinstance,whiletheEUisinterestedinliberalizationofservicesinmode3focusingonsectorssuchasaccountancy,legalmatters,retailandbanking,Indiaisnotconsidereddata-secureundertheEUlegislation,whichrestrictstheflowofsensitivedatawithitstradingpartners.

SpecificexpectationsfromtheFTAdifferacrosssectorsandthetradingpartners.Forinstance,accordingtotheEuropeanCouncilonForeignRelations8,theEUdesiresIndiatoliberalizeitsprofessionalservicessector,especiallyaccountancyandlegalservices.TheEUalsoexpectsgreaterstrengtheningoftheintellectualpropertyrightsinIndiatoallowevergreeningofitspatentsinthecountry.Ontheotherhand,IndiabeingaffectedbytheEUstandardsandregulationsregardingthedigitaleconomy,hasexpressedconcernsovernon-identificationoftheeconomyasa“data-securecountry”.ThisisdespitetheintroductionoftheInformationTechnologyAct(2000)andtheInformationTechnologyRules(2011),inlinewiththe“safeharbor”principlesadoptedbytheUnitedStates.India’sinterestalsoliesineasingofrestrictionsonmobilityofskilledIndianprofessionalsaswellasthestandardizationofqualificationsandprofessionalstandardsbetweentheEUpartnersthathaveconstrainedIndianprofessionals’accesstotheEUmarkets.9

TheEU,asinglemarketcomprising27countries,isreportedtobetheworld’slargesttradingbloc,thetoptradingpartnerfor80countriesandthemostopentodevelopingcountries.10AccordingtotheEuropeanCommission(EC),theEUisalsotheworld’slargesttraderofservices,accountingfor25%oftheEU’sGDPandsupporting21millionEUjobs,directlyandindirectly.11AspertheEC’sestimates,theservicessectorexportsexceeded€900billionin2022highlightingtherolethattradeinservicesplaysintheEU’seconomy.Ontheotherhand,India’stradeinserviceshasbeentheengineofitseconomicgrowth,contributing53.89%ofIndia'sGVAin2022.12Thissectorhas

8Source:EuropeanCouncilonForeignRelations

https://ecfr.eu/special/what

_does_india_think/analysis/the_ftaastrategic_call_for_the_eu_and_india,accessedonAugust14,2023

9Source:EuropeanCommision:

https://policy.trade.ec.europa.eu/eu

-trade-relationships-country-and-region/countries-and-regions/india_en,accessedon20thJune2023

10Source:EUpositioninworldtrade:h

ttps://policy.trade.ec.europa.eu/eu

-trade-relationships-country-and-region/eu-position-world-trade_en,accessedon13thJanuary2023

11Source;

https://policy.trade.ec.europa.eu/help

-exporters-and-importers/accessing-markets/goods-and-services/services_en

12

/economy/country/india

-gdp-sectorwise.php

3

notonlyprovidedemployment,ithasalsoattractedsubstantialforeigninvestmentflowsandhasbeenakeycontributortoIndia’sexportsoverthepastfewdecades.

2.BackgroundandPreliminaryAnalysis

IndiaandtheEUhavebeensteadytradingpartnersinbothgoodsandservicesfordecades.BothsidesadoptedaJointActionPlanin2005,reviewedin2008,tostrengthentradeandinvestmentties.13Currently,theEUisIndia’sthirdlargesttradingpartner,accountingforaround11%oftotalIndiantrade.14TheEUisalsooneofthelargestsourcesofForeigndirectinvestments(FDI)inIndia.

GrowthinservicestradebetweenIndiaandtheEUhasshownrapidincreaseoverthelastdecade,fromUSD28.76billionin2010toUSD48.45billionin2019.However,threemajorshocksdisruptedtherisingtradeflowsbetweenthenations,makingitimperativetorevisitthetraderelationsbetweenthetwoeconomies.First,theCovid-19pandemic,whichwasasignificantblowtoglobaltrade.Second,Britain,whichconstitutedaround16%ofEUexportstoIndiain2019,andalmosthalfofallpre-BrexitEUFDIstockinIndia,exitedtheEUtherebynecessitatingarevisitofthetraderelationsbetweenIndiaandtheEUwhileaseparateagreementisundernegotiationbetweenIndiaandtheUK.ThirdistheriseofChinabecomingamajorsupplierforIndia’simports,replacingregionaltradeblocks,liketheEU(Poitierset.al,2021).Asaresult,afteragapofnineyears,in2022,IndiaandtheEUhaverelaunchedtalksforanall-inclusivefreetradeagreement(FTA),tocatertotheircommoninterestsconcerningtradeinservices.

2.1.TradeinServices–IndiaandtheEU

ThissectionprovidesabriefdescriptionofIndia-EUtradeinservicestounderstandtherelativestandingoftheseeconomiesinglobalservicestrade,followedbytheircurrentbilateralflowsovertheyears.15Itdiscussestheexportandimportsalongwiththeleadingtradingpartnersandtheleadingservicessub-sectorsoftrade.Theperiodtakenintoconsiderationforanalysisis2010-2021.Theanalyseshavebeenbasedoncumulativetradeflowsduring2010-2021,extractedfromtheUNCTADdatabase.

2.1.1.TheEU’sServicesTradeflows

13Source:

.in/Portal/ForeignRelation/India

-EU_Relations.pdf

14Source:EuropeanCommision:

https://policy.trade.ec.europa.eu/eu

-trade-relationships-country-and-

region/countries-and-regions/india_en,accessedon13thJanuary2023

15WeadopttheservicescategorisationfromtheUNCTAD’sdefinitions(seeTableTA.1intheAppendix).

4

InmillionUSD

Inpercentageterms

TheEUcontributesaround25%ofglobaltradeinservices16whiletheservicessectorconstitutesabout75%ofGVAintheEU.17AsshowninFigure1,theEU’stradeinserviceshasgrownovertheyears.Totaltradeinserviceshasgrownataround4%CAGRduringthisperiod.Also,servicesexportshaveexceededimportseveryyearoverthepastdecade.

Figure1:TheEU’sservicestradeflowswiththeworld

2500000

2000000

1500000

1000000

500000

0

201020112012201320142015201620172018201920202021

ExportsImports%Exports%Imports

35

30

25

20

15

10

5

0

Source:ThefigurehasbeencompliedbyusingdatafromtheDatabase(

/EN/

).Thereportercountryisthe“EU”andthepartnercountryisthe“world”.Thepercentagesareintermsoftotalexportsandtotalimportsofservices,respectively.

ThemostexportedservicesbytheEUoverthepastdecadewereTransport,Travel,Telecommunicationservices.ThemostimportedservicesbytheEUoverthepastdecadewereTransport,TravelfollowedbyTechnical(andtraderelated)services.Figure2givesarelativerankingofthevariousservicestradedbytheEUwiththeworldduring2010-2021.

16Source:EUROSTAT:worldtradeinservices,https://ec.europa.eu/eurostat/statistics-

explained/index.php?title=World_trade_in_services#International_trade_in_services_.E2.80.93_overviewaccessedon14thJanuary2023

17Source:EUROSTAT:https://ec.europa.eu/eurostat/web/products-eurostat-news/-/ddn-20211021-1,accessedon15thJanuary2023

5

Figure2:TheEU'sCumulativeExportsandImports(2010-21)totheWorld

Transport

Travel

Telecommunications,computer,andinformationservices

Technical,trade-related,andotherbusinessservices

Computer

Financial

Professionalandmanagementconsultingservices

IP

Goodsrelated

Businessandmanagementconsultingandpublicrelationsservices

R&D

InsuranceandPension

Telecom

Construction

Personal,cultural,andrecreationalservices

Govt.related

01000000200000030000004000000

5000000

InUSD

EU'sImports(2010-21)EU'sExports(2010-21)

Source:ThefigurehasbeencompliedbyusingdatafromtheUNCTADDatabase

(

/EN/

).Thesub-sectorshavebeenarrangedindescendingorderoftheircumulativetradevaluesofcumulativeexportsduring2010-2021.Thepartnercountryoftradeforboththetradeflowsisthe“world”.Thefigureisbasedoncumulativeexportsandimportsduring2010-2021.

Basedonthecumulativeexportflowsandimportflowswiththeworld,overthepastdecade(2010-2021),wecanidentifytheleadingexporterandimportercountriesintheEUregion.Amongthe27countriesintheregion,hightradeflowsacrossdifferentsectorswerereportedbycountrieslikeGermany,France,Netherlands,Ireland,Spain,Italy,Denmark,Belgium,Austria,Sweden,Poland,LuxembourgandSweden.Foroverallservices,wefindthatGermany,FranceandtheNetherlandswerethemajorexporters,followedbyIrelandandSpain.Table1givesasnapshotofthetopexporterEUmemberstatesinvariouscategoriesofserviceswithworldasthepartner.

6

Table1:Servicessub-sectorwisetopExporterEUmemberstates

TotalServices

Germany

France

Netherlands

Transport

Germany

France

Denmark

Travel

Spain

France

Italy

Technical&Trade-related

France

Germany

Ireland

Computer

Ireland

Germany

Netherlands

Financial

Luxembourg

Germany

Ireland

Professional&

Management

Germany

Belgium

France

IntellectualPropertyn.i.e.

Netherlands

Germany

France

R&D

Germany

France

Belgium

Insurance&pension

Ireland

Germany

France

Telecom

France

Italy

Germany

Construction

Denmark

Netherlands

Belgium

Source:ThetablehasbeencompliedbyusingdatafromtheUNCTADDatabase

(

/EN/

).Thetopexportermemberstateshavebeenidentifiedonthebasisofthecumulativeexportvaluesforeachcountryover2010-2021.Thepartnercountryineachcaseisthe“world”.TheUnitedKingdom,UK,hasbeendroppedfromthecalculations.

AmongsttheEUmemberstates,thetopimportersoftotalservicesfromtheworldareGermany,France,Ireland,Netherlands,andItaly.Table2liststhetopimporterEUmemberstatesinvariouscategoriesofserviceswiththeworldasthepartner.CountrieslikeGermany,Italy,IrelandandFinlandhavehadhigherimportsoverexportsinthepastdecade,resultinginnegativeservicestradebalance.TherestoftheEUmemberstateshavemaintainedpositivebalances.

7

Table2:Servicessub-sectorwisetopImporterEUmemberstates

TotalServices

Germany

France

Ireland

Transport

Germany

France

Denmark

Travel

Germany

France

Italy

Technical&Trade-related

Ireland

France

Germany

Professional&

Management

Germany

Belgium

Netherlands

IntellectualPropertyn.i.e.

Ireland

Netherlands

France

R&D

Ireland

Germany

France

Financial

Luxembourg

Germany

Ireland

Computer

Germany

France

Netherlands

Goodsrelated

France

Germany

Netherlands

Insurance&pension

France

Ireland

Germany

Telecom

Italy

France

Germany

Personal,culturaland

recreational

Germany

Netherlands

France

Construction

Denmark

Belgium

Netherlands

Source:ThetablehasbeencompliedbyusingdatafromtheUNCTADDatabase

(

/EN/

).Thetopimportercountrieshavebeenidentifiedonthebasisofthecumulativeimportvaluesforeachcountryover2010-2021.Thepartnercountryineachcaseisthe

“world”.TheUnitedKingdom,UK,hasbeendroppedfromthecalculations.

8

InmillionUSD

Inpercentageterms

2.1.2.India’sServicesTradeflows

In2021,Indiacontributedaround4%and3.5%ofglobalservicesexportsandimports,whilethecontributionofthesectortoIndianGDPwasmorethan50percent.18Indiahaswitnessedasteadygrowthinservicestradeoverthepastdecadewithapositivetradebalanceovertheyears(seeFigure3).

Figure3:India’sservicestradeflowswiththeworld

45

300000

40

250000

35

30

200000

25

150000

20

15

100000

10

50000

5

0

0

201020112012201320142015201620172018201920202021

ExportsImports%Exports%Imports

Source:ThefigurehasbeencompliedbyusingdatafromtheUNCTADDatabase(

/EN/

).ThereportercountryisIndia,andthepartnercountryisthe“world”.Thepercentagesareintermsoftotalexportsandtotalimportsofservices,respectively.

AcloseranalysisofIndia’sservicestraderevealsthatComputer-relatedservicesandProfessionalandManagementConsultingserviceshavebeenthem