This paper highlights India's unique services-led export growth path. It observes how Indian business services have helped manufacturers world-wide become more efficient and productive, and asks how Indian business services can do the same for local manufacturers thus supporting the "Make in India" initiative. The paper also explores the potential for broadening the export base in services. The service sector with the greatest potential for both manufacturing and knowledge intensive business services is telecommunications - particularly broadband internet services. In addition, reforms in the distribution sector which enable multi-channel wholesale and retailing could facilitate the development of marketing channels for SME manufacturers, both across the vast Indian market and abroad. Reforms in the logistics sector would further improve the competitiveness of local manufacturers producing time-sensitive goods included in global value chains. Finally, competitiveness in knowledge-intensive services would be obtained through knowledge sharing across borders. A prerequisite for broadening the export base in these sectors is openness to foreign professionals. The set of proposed recommendations emerging from this analysis underlines the importance of streamlining sector-level regulatory frameworks in all sectors, thus encouraging foreign entry and competition. It also highlights the role that cross-cutting improvements in the trade and business environment would play to render services providers, as well as down-stream manufacturers, more competitive.
HILDEGUNN KYVIK NORDAS
Hildegunn Kyvik Nordas is Senior Trade Policy Analyst at the Trade and Agriculture Directorate at the Organisation for Economic Co-operation and Development (OECD).
She works on services trade policy analysis and has led a long-term project on developing trade restrictiveness indices for 18 service sectors in 40 countries.
Before joining the OECD in 2005 Nordas worked as Manager of the Economics Department at Chr. Michelsen Institute (CMI) in Norway, where she did research on trade and development, policy analysis, and policy advice to governments and aid agencies. Her work experience also includes two years as a counsellor at the research department in the World Trade Organization. Nordas has been associate professor at the Department of Economics, University of Bergen and a visiting scholar at Stanford University, USA, University of Durban Westville, South Africa, and University of Western Cape, South Africa.
Nordas has published extensively, including academic journal articles, book chapters and OECD Trade Policy Papers on international trade in goods and services, development and economic growth.