With exports of services badly hit by the global economic slowdown, the Government is in talks with industry to provide a relief package for the sector. This was stated by Mr Anand Sharma, Minister for Commerce and Industry, on Friday on the sidelines of a CII conference on services exports.
“These are challenging times, but services have a significant contribution in exports. The industry has made representations and we are talking to all the stakeholders before we formulate the final policy for the next five years,” said Mr Sharma. He added that the policy would especially look at sectors such as IT, ITeS, healthcare and tourism and would aim to address short-term challenges, while achieving long-term results.
According to Mr Chandrajit Bannerjee, Director-General, CII, the industry is looking for sector-specific formulas. “The Industrial Training Institutes (ITIs) should be extended to other sectors such as healthcare. We’re also looking for industry status for healthcare, besides an approval for foreign investment in retail,” he said.
Mr Sharma said that with the traditional markets in bad shape, the industry should look towards emerging markets in Africa and Latin America.
Services currently account for 40 per cent of our exports, but globally India’s share stands at 3 per cent, said Mr Sharma. “We must think of how to double this,” he said.
Mr Sharma stated that the Government had set aside a sum of Rs 30,000 crore for the National Skill Development Corporation and is also setting up more centres of excellence such as IITs.
“We need to invest in skill development by setting up polytechnics. We have the people, but have to make them employable now,” he said and added that with the world caught in a slowdown, this is opportune time for India to grow.
The Minister also said that the Foreign Trade Policy is expected to be released in the second half of next month.
Source : Business Line