Abstract
International production sharing activities have increased substantially in the service sector. India as a host-country has attracted a large amount of those activities and by now holds a significant position in the global service supply chain. This development may have shaped significantly India’s service industry and affected the country’s trade patterns. Therefore, the paper examines the inflow of production sharing activities in the service sector in India, and assesses econometrically the role and quantitative effect on India’s service exports. Our empirical findings indicate that international production sharing had subsequently a decisive impact on the growth of service exports from India to her trade partners.
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