India Ranks 4th in Digital Services Exports: WTO

According to the latest report from the World Trade Organization (WTO), India has experienced a significant 17% jump in the export of digitally delivered services, making it the world’s fourth-largest exporter in this segment. The country’s export value reached a staggering $257 billion, surpassing the growth rates of both China and Germany.

The global exports of digitally delivered services have seen a remarkable increase, reaching $4.25 trillion, which marks a 9% growth from the previous year. These exports now constitute 13.8% of worldwide exports of goods and services, as per the WTO data. In contrast to the decline in global trade of goods, exports of digitally delivered services continued to thrive, particularly in Europe and Asia, where exports rose by 11% and 9% respectively.

The Growth of Digitally Delivered Services

When looking at the breakdown of digitally delivered services, business, professional, and technical services accounted for 41.2% of world exports, followed by computer services (20.5%), financial services (16%), intellectual property-related services (10.9%), insurance and pension services (5.2%), telecommunications services (2.6%), audio-visual and other personal, cultural, and recreational services (2.1%), and information services (1.5%).

This rapid adoption and growth of digitally delivered services is expected to revolutionize various aspects of the economy, leading to increased efficiency, innovation, cost savings, personalization opportunities, job creation, and economic growth. These factors further contribute to the expansion of trade in digitally delivered services.

The Future Outlook

The WTO anticipates improvements in the global economy and trade, forecasting a 2.6% increase in world goods trade volume for 2024. Although there was a 1.2% decline in goods trade volume in 2023, commercial services experienced a 9% increase, reaching $7.5 trillion in value.

The report highlights the rapid adoption of artificial intelligence (AI) technologies, including models capable of creating content such as text, images, music, and videos. These advancements are set to revolutionize various aspects of the economy, leading to increased efficiency, innovation, cost savings, personalization opportunities, job creation, and economic growth. As a result, trade in digitally delivered services is expected to continue thriving.

However, the WTO also cautions that regional conflicts, geopolitical tensions, and economic policy uncertainty pose substantial downside risks to the forecast. Despite these challenges, the organization remains optimistic about the future growth of digital services exports and the overall global economy.