MAYASIA BUSINESS OUTLOOK8INDIA'S POTENTIAL IN DIGITAL TRADE SERVICES WITH ASIA-PACIFICWorldwide flow of digital trade services have increased and are now having a greater impact on productivity and growth than global trade in goods. This viewpoint is clearly supported by evidence. The digital boom has immediate consequences for India, which is already a leader among emerging markets in developing a Digitally advanced services sector based on information and communication technology.India's comparative advantage in Digital Trade services area must become an important goal for the next decade as the country approaches its 76th Independence Day. And in order to maintain its position as a global growth leader, the implementation of the Goods and Services Tax reforms will be a vital factor.Why does it matter?Countries with a higher level of internet penetration are more open to trade and sell to a wider range of markets. Indeed, a 10 percent increase in `bilateral digital connectivity' boosts goods trade by nearly two percent and services trade by more than three percent. Digitalization is important for all sectors, including agriculture, natural resources, and textiles, but it is especially important for exports of sophisticated manufactured goods and digitally deliverable services. Digitalization is also linked to countries reaping greater benefits from regional trade treaties. When combined with an RTA, a 10 percent increase in digital connectivity leads to a 2.3 percent increase in goods exports. The benefits of digital trade were already apparent before the COVID-19 pandemic, but the current crisis has further accelerated the shift towards a digital economy and underscored the need for governments to enable digital trade as a means to mitigate the economic slowdown and speed up recovery.Digital trade in services has not only become a lifeline during this outbreak, but also has the ability to transform our country more profitable in the long run. It has the potential to strengthen the global economy and create countless opportunities for people of our country in fields as diverse as healthcare and professional services. The telemedicine market alone is expected to be worth more than $175 billion by 2026. As a result of the COVID-19 outbreak, some telemedicine providers have seen three-digit percentage increases in consultations. However, a number of impediments remain in the way of realizing the full potential of digital trade.India's Strength in Digital trade ServicesFirst, a look at the evidence for India's strength in digital services, followed by recommendations for some of the reforms required to bring India closer to the global productivity frontier:India's share of global digital services exports has risen much faster than its share of global goods exports, and is now more than double its share of global goods exports. India's services exports now account for 35 percent of total Indian exports. This is significantly higher than in other emerging markets and closer to the average in advanced economies. Modern service exports have dominated India's rise in service exports, INDIA HAS CREATED THE WORLD'S FIRST DIGITAL ID INFRASTRUCTURE, WHICH IS ALREADY TRANSFORMING ONLINE SERVICES, PARTICULARLY THOSE PROVIDED BY THE GOVERNMENTIMPRESSIONS
< Page 7 | Page 9 >