NEW DELHI: Acknowledging that the services sector was facing an uphill task due to demand recession in the Western economies, the Centre on Friday indicated that it was considering extending incentives to the services sector which could find place in the new Foreign Trade Policy (FTP) to be unveiled early next month.
Union Commerce and Industry Minister Anand Sharma said that the government, which was in talks with all the stakeholders while formulating the policy, had asked the industry to diversify into the African and Latin American markets to insulate its exports.
“We will be discussing again with the services sector, they have made few presentations. We are talking to all stakeholders before we formulate the foreign trade policy for the next five years,” Mr. Sharma said on the sidelines of a CII function here.
“We are talking to the services sector. I am sure the FTP will address the short-term challenges of the sector. The government would help the industry to increase the exports of services,” he said.
India has 2.7 per cent share in the global services market. Industry experts say India has the potential to raise its share in global services export to 4-5 per cent in the next 3-4 years, if developed countries ease visa norms for short-term assignments by professionals.
Services exports have been affected due to the ongoing slowdown in the world’s major markets, including in the U.S. and European Union countries. India’s services exports in 2007-08 were valued at $90 billion.
The sector has suggested the government to negotiate mutual recognition and totalisation agreements with countries of interest.
Source : The Hindu