Reinforcing the Indian Services Export

With the objective of reinforcing India’s service exports, the Services Export Promotion Council (SEPC) organised a webinar ‘Reinforcing the Indian Services Export: Way Forward to a Sustainable Export of Services’, in association with World Trade Center Mumbai.

Speaking on the occasion, Mr. Agneshwar Sen, Head-Trade Policy vertical, Tax and Economic Policy Group, EY India said, services exports will play a crucial role in the post-COVID revival of Indian economy. India ranks eighth in world export of services, with a share of 3.5% and it has the potential to become the top five exporter through appropriate policy actions. Currently, except for IT-enabled services, where India ranks second, the country does not figure in the top five exporters list in any other service segment.

India ranks ninth in communication service exports, 10th in construction service exports, 12th in tourism & hospitality, 15th in financial services, 16th in transport and education services. Specifically, India ranks 20th in healthcare service exports, which can be improved with focused policy measures of state governments. Mr. Sen suggested Indian exporters to explore business opportunities in Nigeria, Ireland, Romania, Poland, Iraq, Portugal, Thailand and Spain, which are the top eight importers of services. Highlighting policy actions to support services exports, he suggested developing tourism circuits, relaxing visa regime for medical tourism, attracting foreign students in local educational institutes and improving air connectivity with service importing countries.

Mr. Maneck Davar, Chairman, SEPC remarked, service sector plays a major role in India’s economy as it contributes 54% to Gross Value Added, 41% to total exports and 31% to employment. Service sector is a major source of foreign exchange in India. During April-May 2021, surplus from India’s foreign trade in services grew 15%. Today, services exports contributes 7% to India’s GDP. We can further increase the contribution of services to the economy through focused policy intervention. SEPC will soon launch an online platform to facilitate B2B matchmaking between Indian service exporters and potential foreign clients. The government should release SEIS dues that are pending for the year 2019-20 to provide immediate relief to the industry. Further, India should promote export of tourism, education, financial services and R&D services to enhance its share in world services exports.

SEIS stands for Services Export Incentive Scheme, under which the government provides subsidy to services exporters to enhance their global competitiveness. Mr. Davar informed that his council will partner with World Trade Center Mumbai in organizing trade promotion programs and industry outreach activities for enhancing services exports from the country.

Ms. Rupa Naik, Executive Director-MVIRDC World Trade Center Mumbai said, services sector has a major role in the success of the government’s flagship schemes such as Make in India, Skill India and Digital India as services are critical inputs for the manufacturing sector. State governments have a major role to play in improving India’s ranking in world exports of tourism, education and healthcare services. We need effective implementation of the 12 champion service sector scheme (2018), and the National Education Policy (2020) to strengthen the global competitiveness of India’s services sector. Currently, software and IT enabled services account for more than 40% of services export basket. So, there is a need to diversify our service exports basket into other areas such as tourism, education and healthcare services.

Ms. Naik assured that Wetrade.org, which is the new age digital platform of WTC Mumbai to showcase Indian products & services to foreign visitors, will support export of services. Wetrade.org kickstarted healthcare and wellness expo on March 1, 2021 to facilitate Indian service providers in this sector to network with their potential clients abroad. The expo featured 50 exhibitors and it drew 1,000 visitors from various countries.

Mr. Sunil Talati, Vice Chairman-SEPC raised hope that as the pace of vaccination increases, there will be gradual recovery in hospitality, tourism and air travel services. He also pointed out that SEPC has increased staff strength in recent period to cater to a wide geography in the country. The webinar was also addressed by Dr. Abhay Sinha, Director General-SEPC. Ms. Alpa Antani, Regional Director, SEPC Mumbai proposed vote of thanks for the event.