Trade in services: Impact on employment in India

India's services sector has been growing rapidly and so also the trade in services. This paper attempts to assess if trade is able to generate employment in the services sector. Based on the time series macro data the direct and indirect effects of exports and imports on employment after deciphering their effects included in the overall growth, are seen to be mostly negligible. This holds both in the case of formal and informal services. Also, as per the company-level data international trade is not found to be an important determinant of employment in the services sector. On the whole, trade in services sector may enhance growth but this pattern of growth is less likely to be inclusive. Finally, the paper brings out the policy implications.