India seeks to break China wall for $300 bn prize
New Delhi is working to identify trade barriers that Indian service exporters face in China, with the aim of capitalizing on potential opportunities. The commerce department is seeking information on China's data localization, cybersecurity, cross-border data transfer requirements, as well as visas, work permits, and professional qualification recognition.
Indian service providers are exploring emerging opportunities, including partnerships, investments, and increased exports to China. In 2024, India's services exports to China totaled $8.95 billion, while China's total import of services amounted to around $300 billion. IT, IT-enabled services, and digital solutions are key exports from India to China.
Challenges include strict licensing, registration, and local rules, as well as mobility restrictions for deploying talent to China. Issues related to tax, payments, remittances, and accessing contracts are also concerns for services exporters to China. Despite the US and the UK being the world's top exporters of commercial services, India's share in this sector grew to 4.3% in 2024 from 3% in 2014, whereas China's share increased to 5.1% from 4.2% during the same period.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
