India scores ahead of China in digital services exports in 2023, according to WTO report

India has become the world's fourth-largest exporter of digitally delivered services, constituting over a fifth of global trade in services. According to the latest Global Trade Outlook and Statistics report from the World Trade Organisation (WTO), India's exports of digitally delivered services stood at $257 billion in 2023 registering a 17 percent increase from the previous year. The country's performance was much better than Germany and China, which registered a growth of 4 percent each.

According to WTO estimates, global exports of digitally delivered services reached $4.25 trillion in 2023, up 9 percent year-on-year (YoY), accounting for 13.8 percent of world exports of goods and services.

Unlike trade in goods, which fell in 2023 globally and in all regions, exports of digitally delivered services continued to thrive. In Europe and Asia (which hold a global share of 52.4 percent and 23.8 percent, respectively) exports rose by 11 percent and 9 percent, the report added.

In 2023, business, professional, and technical services accounted for 41.2 percent of world exports of digitally delivered services, followed by computer services (20.5 percent), financial services (16 percent), intellectual property related services (10.9 percent), insurance and pension services (5.2 percent), telecommunications services (2.6 percent), audio-visual and other personal, cultural, and recreational services (2.1 percent), and information services (1.5 percent).

"Use of artificial intelligence (AI), including models capable of creating content, such as text, images, music or even videos, increased rapidly in 2023. These technologies are set to revolutionise various aspects of the economy, leading to increased efficiency, innovation, cost savings, personalisation opportunities, creation of new jobs, and economic growth, further boosting trade in digitally delivered services," the report said.

Overall, the WTO expects the global economy and trade to improve. After a 1.2 percent decline in goods trade volume, the multilateral body on Wednesday forecast a 2.6 percent increase in 2024. In value terms, world goods trade, measured by the average of exports and imports, fell 5 percent in 2023 to $24 trillion, while commercial services expanded 9 percent to $7.5 trillion.

International trade in digitally-deliverable services, or services that can be delivered over information and communications technology (ICT) networks, include ICT services themselves, sales and marketing services, financial services, professional services, and education and training services, among others.