Services constitute a large and growing share of economic activity in developing countries. This is especially so in middle and upper income developing countries where the services sector makes up about 60 per cent of GDP on average. Concomitantly, many developing countries have also developed substantial comparative advantages in various services activities. Apart from its direct contribution to output, employment and export revenue, the services sector plays an integral role in terms of its links to the other parts of the economy. Indeed, an efficient services sector helps boost a country’s manufacturing and overall global economic competitiveness. It is in this context that the liberalization of services trade under the multilateral framework of GATS assumes importance, particularly in the ongoing Doha Round.