File Photo: Union Minister Nirmala Sitharaman.
The government is working on "an ambitious reforms agenda" to enhance competitiveness and promote quality services in the country, Commerce and Industry Minister Nirmala Sitharaman said today.
"To increase competitiveness through reforms and promote quality services, the department is working on an ambitious reforms agenda for services and this is being pursued through an inter-ministerial mechanism," she said.
The minister was speaking at the inaugural function of the Global Exhibition on Services (GES) 2015.
Listing out other measures the ministry is taking to promote services exports, Ms Sitharaman said India is negotiating trade agreements in services at multilateral, plurilateral and bilateral levels.
"As part of the focus strategy to promote services exports, the Department of Commerce has been taking a series of steps," she said.
The ministry also organised services conclaves in 2013 and 2014 for augmenting exports and the potential thereof.
She said that in order to explore new geographies for services sector, the foreign trade policy has included measures consistent with the foreign policy "based on Look East, Link West, but Act East".
The minister underlined the need to diversify the export basket of the sector.
These measures assume significance as the services sector contributes about 57 per cent to the country's GDP.
Services exports last year stood at $151.5 billion while imports came in at only $78.5 billion.
India is looking to increase its exports in goods and services to $900 billion by 2019-20.
Speaking on the occasion, Commerce Secretary Rajeev Kher said it will serve as a platform to enhance strategic cooperation and develop synergies between the players of the services sector in India with its global counterparts.
Some 60 countries participated in the 3-day GES, which was inaugurated by Prime Minister Narendra Modi today.
The themes in focus include IT & telecom, tourism, media & entertainment, healthcare, logistics, professional services, education, R&D, space and SME in services.
Ms Sitharaman exuded confidence that services sector would provide the impetus to the country's economic growth story.
The sector now contributes one-fourth of employment and one-third of the total exports of the country.
Speaking on the occasion, Apollo Hospitals Chairman Prathap C Reddy said the recent initiative by the government in allowing e-visa will facilitate growth of services in the health segment.
He said India has the potential to provide holistic health solutions and it can become global health care destination in times to come.
Indian Banks Association Chairman TM Bhasin said that size of banking assets in the country has crossed $2 trillion and the sector has the potential to become fifth largest in the world by 2020.
Services Export Promotion Council Chairman Naresh Trehan said a number of developed countries are now dependent on Indian healthcare service providers for their requirements.
He said that 17 per cent of all the super-specialists serving in the US are now from India.
"There is huge potential that needs to be explored in Japan, China and CIS countries," he added.