The Hindu : Karnataka / Bangalore News : `Services sector has major role in country's foreign trade'

Online edition of India's National Newspaper
Thursday, Sep 14, 2006
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Karnataka

Karnataka - Bangalore

`Services sector has major role in country's foreign trade'

Special Correspondent

`It accounts for 54.1 per cent of Gross Domestic Product'

EXCHANGING PLEASANTRIES: O.P. Garg, president of the Federation of Indian Export Organisations, Karnataka Chapter (centre), greeting the former Commerce Secretary P.P. Prabhu (left) at the inauguration of a seminar on `Trade in Services,' in Bangalor e on Wednesday. A Shakthivel, FIEO chairman, Southern Region, is seen. — Photo: V. Sreenivasa Murthy

Bangalore: The services sector has become important for India's international trade, which is growing more rapidly than the export of products, A. Shakthivel, chairman, southern region of the Federation of Indian Export Organisations (FIEO), has said.

He was speaking at a workshop on "Trade in Services" here on Wednesday. He also announced a road show, "Servinexpo," related to the sector.

In 2005, India's share in world merchandise exports was just above 0.9 per cent, and that in commercial services was 2 per cent. The services sector accounted for a 54.1 per cent share in the Gross Domestic Product.

Thanks to the software industry, which created the Indian brand name overseas, services exports from India increased by 71 per cent in 2004-05 over the previous year to reach $ 46 billion. A new development in services exports was the growth of business services, including professional services, Mr. Shakthivel said.

"India still have to find ways to become known as an exporter of quality services by providing relevant export market information, appropriate export financing with reduced transaction costs, good marketing of services through Indian embassies and industry associations and by anchoring brand ambassadors'' he said. The FIEO, under the leadership of its president O.P. Garg, would organise an international congress and exposition, "ServinXpo," from October 4 to 6.

It would be a world-class event highlighting global business opportunities in the services sector and showcasing the best of outsourcing and services export suppliers. Major investment promotion agencies and infrastructure providers would be present, he said.

Besides software, there was good potential for export of many other professional services such as medical care/hospitals, satellite mapping, printing and publishing, Mr. Shakthivel said.

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