Revealed comparative advantages for India in services trade

The service sector has emerged as one of the growth drivers of the Indian Economy. This paper analyses the evolution of trade specialisation in service sector of India using various measures of comparative advantage. The findings indicate that the distribution of the comparative advantage indices has remained fairly stable during 1980-2006. There is also high degree of persistence in the values of indices of comparative advantage. The overall lack of dynamism indicates that drastic overhauling in the policies and their implementation is needed to further improve the comparative advantage in trade in services.