India will have to keep a close watch on political backlash against globalisation and also developments in China as both have implications on the domestic economy, the Economic Survey 2016-17 said today. From India's perspective, it said, the political carrying capacity for globalisation is relevant not just for goods but also services. The world's service exports-GDP ratio is about 6.1 per cent. "If India grows rapidly on the back of dynamic services exports, the world's service exports-GDP ratio will increase by 0.5 percentage points - which would be a considerable proportion of global exports," the Survey said. Put differently, India's services exports growth will test the world's globalisation carrying capacity in services.

Source: dna January 31, 2017 13:12 UTC