Financial reforms have given a push to services

Recent reforms such as the Goods and Services Tax (GST), ease of doing business and liberal foreign direct investment policies have greatly helped the Indian services sectors to grow, said President Ram Nath Kovind. The services sector contributes 61% to the gross value added, and India has set a target of reaching 4.2% in global services exports from the current 3.4%, he said.

The President was speaking at the fourth Global Exhibition on Services at Goregaon’s Bombay Exhibition Centre, which he inaugurated on Tuesday. The four-day exhibition is aimed at attracting investment in India and recognising the contribution of the services sector in the economy’s growth. It focuses on 12 sectors important for the economy.

International players

The first three editions of GES were held in Delhi but the organisers chose Mumbai, the country’s financial capital, for the fourth leg. The conclave brings together Indian and international players in the services sector, “with the objective of enhancing trade and strategic cooperation in services.” It is organised by the Ministry of Commerce along with the Services Export Promotion Council and Confederation of Indian Industry.

“I hope this event will deepen India’s engagement with the globe. With its young population, large talent pool and booming economy, India has natural advantages in the services sector. India is buzzing with ideas and opportunities,” the President said in his inaugural address. He also launched the India services logo and portal on champion sectors.

This year’s exhibition focuses on 12 high-impact services sectors namely information technology (IT) and IT-enabled services, tourism/hospitality and healthcare, infrastructure and construction, education, banking and financial services, environment, legal, media and entertainment, accounting and finance, transport and logistics, and communications. The government is focusing on these sectors for expanding their export potential, attracting investment, raising incomes and generating employment.

Large economies

“India is one of the fastest growing large economies. If India grows to become a $5 trillion economy, $3 trillion can be contributed by the services sector,” said Union Minister of Commerce Suresh Prabhu. India is working closely with the WTO to export services, he added.

The event also saw experts from the 12 service sectors speak about opportunities and challenges. Uday Kotak of the Kotak Mahindra Group, representing the finance sector, said, “The Indian economy is going through a major transformation due to GST. Indian finance is under change. There is growth in the years to come.”

 

Source – The Hindu

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