Share of services exports likely to grow faster than merchandise exports: Suresh Prabhu

There's a lot of good news on the export front. To begin with, the latest trade data released by the Ministry of Commerce and Industry Exports shows that exports have exhibited positive growth of 4.48 per cent in dollar terms in February 2018 (year-on-year). In fact, exports have been on a positive trajectory since August 2016, barring a temporary setback in October 2017. And today, Union Minister Suresh Prabhu, announced that the government is working on a new strategy that seeks to boost the services sector while providing an enabling environment to the industry to increase the country's exports. According to him, the services sector will play a significant role in pushing the country's economic growth and the industry must focus on delivering services of global standards.

"In last few months, we are seeing exports registering growth. We are targeting to ensure that exports are not only [of] traditional products, but new products are also added to the basket," said the commerce and industry minister on the sidelines of inaugurating the CapIndia 2018 event in Mumbai. He added that the share of services is likely to grow faster than merchandise exports, thus raising the total exports from the country.

The government apparently has already identified 12 service sectors as 'Champion Services' - including IT, tourism and hospitality - and approved a whopping Rs 5,000 crore to promote them. "We have prepared an action plan for each of these sectors to promote them domestically as well as globally," he explained, adding that this decision will drive the growth of the services economy in India.

Then there is the country's booming chemical sector that, as Prabhu pointed out, needs to create a capacity to meet exports demand. According to Satish Wagh, Chairman of CHEMEXCIL, (as the Basic Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council is popularly known), the sector is expected to double to $300 billion by 2025, clocking an annual growth rate of 15-20 per cent. "To achieve this, the government is also working on a draft chemical policy that will focus on meeting the rising demand for chemicals and reduce imports," he added.

Wagh is also looking forward to tapping opportunities at the three-day expo that kicked off today, which will feature over 700 manufacturers/exporters showcasing a range of products. Over 10,000 business visitors are expected to attend the event along with 400-odd overseas buyers, according to its website. "The expo will help us tap immense opportunities for growth, which exist in the fields of speciality chemicals, polymers and agrochemicals industries, as [the] Make in India initiative further facilitates growth and investment," said Wagh.

Prabhu claimed that the ministry is also in the process of formulating an agri-export policy, which has been put in the public domain to seek stakeholders' views. Meanwhile, the aviation ministry is preparing a plan for providing air cargo support to agricultural hubs to promote farm exports. The minister added that the UAE and Saudi Arabia have shown a keen interest in investing.

The new industrial policy, which seeks to promote emerging sectors, will reportedly be released in a few months.

(With PTI inputs)