This paper examines the significance of cross-border movement of service suppliers in the Indian economy, with specific focus on the information technology and health care sectors. It examines the nature of labour flows in these two sectors, the facilitating and constraining factors, the role of government policies, and the sectoral as well as wider macroeconomic impact and human development implications of such labour flows. The paper suggests various domestic policies that could enhance the benefits of cross border movement of labour in these two sectors and mitigate some of the associated negative consequences.