New Delhi [India], September 29 (ANI): Services industry must be competitive and not seek subsidies to boost exports, Commerce and Industry Minister Piyush Goyal said while addressing an event organised by the Services Exports Promotion Council (SEPC) in New Delhi on Thursday.
Piyush Goyal said, “The focus must shift to strengthening ourselves to competing with the best in the world,” and added that “If we look at global headwinds, we will have an opportunity to wedge our way.”
Minister said that Service Exports from India Scheme (SEIS) was given in 2015 when the ministry noticed that exports did not grow at all and added the government had gradually been removing all subsidies from the export system as these make the country uncompetitive, holding it back.
Services export, going forward, will rise but on their own competitive strength, Goyal said, adding that India could not keep helping uncompetitive industries. Meanwhile, Goyal reiterated India’s ‘ambitious’ target for exports to rise to $2 trillion by 2030, including $1 trillion in services exports. He added that services exports can grow twice the pace of goods exports.
Goyal said India again extended its foreign trade policy by six months from September-end. Export Promotion Councils were anticipating that the new Foreign Trade Policy (FTP) may align with the financial year till March 31. Like other export councils, SEPC has also this view.
“We are ready to come up with the new FTP but only extended it on the request of Export Promotion Councils,” said Goyal.
The commerce ministry reiterated that services is a fast-growing sector and given the phenomenal growth, the sector does not require the crutches of incentives. The sector seems to be well on the course to achieving the target of $350 billion by 2022-23 and further, $1 trillion by 2030, he added.
The minister emphasised that the services sector needs to dream big and march ahead to become competitive in the global markets without incentives and subsidies. “Self-sufficiency and Atmanirbhar Bharat in services is the way forward,” he said. Citing an example of UK-based company JCB, Goyal said that JCB was only exporting to 10 countries but after they came back to India 25 years later, JCB was exporting to more than 100 countries from India.
Earlier during the event, Minister of State of Education Subhas Sarkar emphasised how the new economic policy would lay the foundation for reforming the education sector in the country and help promote skilling and internationalisation of higher education.
SEPC Chairman Sunil H Talati said, “It is essential for the services sector to come together and chart out a strategy that not only focuses on the now but also on the future. We need to focus on skill development in the next generation as well so that the sector strengthens at every rung,” adding that the services sector currently contributes 55 per cent of the total exports.
He said, “By 2023, we aim to reach 75 per cent and internalisation of education and skill development is key to witnessing such unprecedented growth…”
SEPC Director General Abhay Sinha said, “SEPC is not just concentrating on the numbers but on value addition towards the services exports sector. All 16 sectors under SEPC from education and consulting engineering services to travel and marketing are crucial for us. There is one common thread that runs through all the sectors, and this is skilling.” (ANI)
This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.
Source: The Print
