This article examines the trends and composition of services trade within South Asia, a region with substantial potential yet lagging behind its global counterparts. The study highlights the increasing importance of the services sector globally, with its share in world gross domestic product (GDP) rising to 65.7% by 2020, and its contribution to employment reaching 51% of the global workforce. South Asia, comprising eight countries, demonstrates diverse patterns in services trade, with India leading as a major player, contributing 3.77% to the global services trade in 2021. The analysis reveals variations in service distribution across nations and over time, with significant portions of manufacturing services in India and Bhutan, transport services dominating in Nepal and Pakistan, and travel services prevalent in Bhutan and the Maldives. Also, financial services are notable in Afghanistan and Bhutan, while Pakistan excels in insurance and pension services. Despite the challenges, including negative growth during economic downturns and the COVID-19 pandemic, South Asia has witnessed steady growth in the services trade, led by India and the Maldives. This study shows the region’s growing integration into the global service economy and its evolving trade dynamics.

South Asia, services trade, growth rate, import composition, export composition

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