Information and communication technology (ict) and trade in services in India

In recent decades, trade in services has recorded impressive growth that surpassed the growth in merchandise trade. The globalisation and development of technology shrink the world that helps in the growth of service trade. Traditionally, services were considered as non-tradable item due to its intangible nature. Unlike merchandise trade, services cannot be stored and it requires direct interaction of service provider and service receiver for delivery. In cross border supply of services, it may not be possible all the times that service provider and service receiver would available at the same point of time. Such a time gap between the service provider and receiver can be filled with the help of Information and Communication Technology (ICT). The growth and developments in ICT across the globe open new dimensions of service trade. The ICT is also the backbone for trade in a large number of services such as computer services, banking and insurance, consultancy etc. The study has attempted to analyse the role of ICT use in international trade in services. The study reveals that ICT has a positive impact on service export in India but it is found insignificant for non-IT based service export.