Q.What is meant by 'services trade' in the context of the Indian economy?

Services trade refers to the cross-border buying and selling of services rather than physical goods. …

While merchandise trade refers to the exchange of tangible goods between countries, services trade refers to the cross-border exchange of intangible services. India is a major exporter of services, particularly software development and IT-enabled services (BPO/KPO), which are delivered digitally to clients abroad without any physical good crossing a border. Other important components of India's services trade include tourism (foreign visitors' spending counts as a services export), transportation services, and financial services. Services exports have become one of India's most important sources of foreign exchange, alongside merchandise exports and remittances …