PremiumThe government said India’ was on track to achieve its merchandise exports target of $400 billion this year, while services exports were likely to be at about $240 to $250 billion, which is much lower, but can grow rapidly and catch up with merchandise exports
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NEW DELHI : The government will give full support to the IT industry to rev up growth and help India’s services exports grow four-fold from current level to $1 trillion in a decade, commerce and industry minister Piyush Goyal told business leaders at a meeting.
A statement from the ministry said on Sunday quoting Goyal that India’ was on track to achieve its merchandise exports target of $400 billion this year, while services exports were likely to be at about $240 to $250 billion, which is much lower, but can grow rapidly and catch up with merchandise exports.
“When I look at the trajectory of these – I personally believe this is going to be a race to the top," the statement said quoting the minister. Goyal said the $1 trillion service exports target should be the ambition and the mission. “You have a little bit of catching up to do. I’ll be delighted if you cross $1 trillion faster than them," the minister told IT industry leaders, referring to merchandise exports growth.
The prospects of information technology firms got a big lift during the pandemic which boosted adoption of technology by many businesses in a big way.
Goyal welcomed the industry’s suggestion to start IT hubs in smaller towns, which would create more jobs and help develop the regions. The minister said the industry should identify the towns, and the central government would assist them in providing all the necessary infrastructure and facilities.
The IT industry can make a big contribution to services exports by focusing on new technology and products that can make India a bigger global player in the sector, the statement said quoting Goyal.
In the virtual meeting over the weekend, the minister told business leaders that they should focus on high-tech products, for which the Central government would provide any assistance needed by the industry. The Central government would go all out to help the industry get top-class facilities, the minister said.
He said the IT industry had grown spectacularly on its own and many of the top companies grew at a time when India did not focus on creating a favourable ecosystem for start-ups. Goyal said the Department for Promotion of Industry and Internal Trade (DPIIT) will provide any assistance needed by the IT industry to grow rapidly and contribute to India’s export of services.
The meeting was attended by Nasscom President Debjani Ghosh, Infosys chief executive officer Salil Parekh, Tech Mahindra chief executive officer and MD C.P. Gurnani, Wipro Chairman Rishad Premji and Krishnan Ramanujam, president and head of business and technology services at Tata Consultancy Services (TCS).
IT industry leaders said the sector had seen strong growth last year, and in the past week, strong earnings reported by companies has set a positive tone for the years ahead, the statement said.
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