It needs no arguing that India should have a comprehensive trade policy incorporating a well considered and comprehensive set of strategies for both merchandise and services. India has come to recognise the immense potential of its foreign trade as an engine of economic and social growth and is continuously restructuring its foreign trade policy.
It is noteworthy that global trade in services is increasing faster than that in merchandise. It is, however, packed with deeper uncertainties and risk factors forcing most trading countries to search for gainful strategies.
Backed by WTO and GATS, advanced countries are most active in this pursuit. Though trade in services is currently dominated developed countries, India is also emerging as one of the leaders in it.
Economic Survey 2004-05 estimates that it has the potential of exporting services worth $57-65 billion by 2008. This potential can be tapped by diversifying into export of new services which were note even heard of till recently.