Bilateral modern services trade between India and Latin America and the Caribbean in the context of the COVID-19 pandemic

The Information Technology enabled Services sector (also referred to as modern services) has been one of the fastest growing segments of India’s exports to and foreign direct investment in Latin America and the Caribbean (LAC) over the past decade. This sector also showed significant resilience during the COVID-19 pandemic, as many Indian firms were able to reinforce their digital transformation, which strengthened their growth and export potential. India’s main comparative and competitive advantages are its large educated workforce, a developed Information and communication technologies (ICT) related infrastructure, and strong innovation performance in this sector. However, imports in this sector remain more restricted both in India and LAC than those in other sectors due to various regulations. There is also scope to increase access and use of modern services businesses and individuals alike in India and LAC.