After giving a strong push to manufacturing through the ‘Make in India’ campaign, Prime Minister Narendra Modi will soon do something similar to the services sector, constituting around 60% of the country’s GDP.
Commerce ministry sources said Modi will on November 23 inaugurate a three-day international exhibition on services in the national capital that will, among other things, showcase India’s strength in the sector and aim to attract more investment to further boost sector’s prospects. The focus segments will be IT/IT-enabled services, e-commerce, professional services, tourism services, entertainment, medical tourism, logistics, healthcare and higher education services.
In what is seen as a preface to the exhibition, the commerce and industry ministry, alongwith industry bodies CII, FIEO, Services Export Promotion Council and the Centre for WTO Studies, organised the second edition of the Services Conclave on Wednesday.
The government is seeking ideas to reform the service sector, codify and define India’s standards on services, as well as to bring out a proper framework and accreditation process, official sources said, adding that all this will help in better implementation of the mutual recognition agreements on services standards with partner countries.
The two-day event has emphasis on widening India’s basket of services exports, which is presently dominated by IT and ITeS. It is attempting to identify the challenge areas in services exports and strategise a roadmap for its sustained and accelerated growth in short, medium and long term.
The Conclave is also expected to lay down modalities for closing the gap between merchandise and services exports to create more employment and business opportunities in the sector. The annual export of services is pegged at $151.47 billion while the export of merchandise stands at $312.5 billion.
The meet has discussions on the underpinnings of the multilateral negotiations and bilateral regional trade agreements in the services sector. Awareness of international services standards in healthcare, education and logistics are important to make a mark on the exports. A deep understanding about Visa regimes and entry restrictions are also important. Focus on logistics services is crucial to create a conducive business environment.
Services sector constitutes around 60% of GDP
Govt seeking ideas to reform sector, codify & define standards on services
Bring out a proper framework & accreditation process