India’s services sector exported services worth Rs 1.25 lakh crore and imported services worth Rs 70,907 crore in April 2020.

Commerce Minister Piyush Goyal today asked the services sector to reduce import dependence and give an opportunity to a large and varied skilled workforce within the country. Piyush Goyal added that the services sector should take the help of Indians in various services as there is no reason why the sector has so much import despite India having a large and varied skilled workforce, according to the Ministry of Commerce & Industry. Piyush Goyal further said that the services sector should help India’s workforce in upgrading their skills by exposure and capacity-building. In a video conference with the service exporters, the Commerce Minister urged them to develop a competitive advantage, focus on quality, and explore new destinations and services as the world is going to be different post-Covid.

Highlighting the significance of the services sector in India’s external trade, the Commerce Minister said that even in the month of a complete nationwide lockdown in April 2020, the Indian services sector exported services worth Rs 1.25 lakh crore and imported services worth Rs 70,907 crore. However, he also pointed out that the services sector has large potential but it has not been harnessed fully. 

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Citing the achievements of the IT sector, the minister said that it flourished due to its own capabilities, and without seeking much of the government’s support. Urging the entire services sector to be self-dependent, he also mentioned that the government can make focused and policy interventions, help the sector in its nascent stages, help them grow, check the unfair practices, but can’t provide support all the time. 

Meanwhile, listing out the signs of revival in the services sector, the Ministry of Finance today said that railway freight traffic has improved by 26 per cent in May over April and the average daily electronic toll collections have increased from Rs 8.25 crore in April 2020 to Rs 36.84 crore in May, rising more than 4 times. The statement also highlighted that the total digital retail financial transactions via NPCI platforms have increased sharply from Rs 6.71 lakh crore in April 2020 to Rs 9.65 lakh crore in May and the trend is expected to continue in June as well.