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Inaugurating the 4th edition of the Global Exhibition on Services (GES) in Indias commercial capital, Hon'ble President Ram Nath Kovind has said that the country"s large talent pool gives it natural advantages in the services sector.
In India, the services sector contributes 61 per cent in gross value added. With its young population, large talent pool and comfort with technology, India has natural advantages in the sector and is set to become even more of a provider of services to the world. Indias global services exports stood at 3.4 per cent in 2016.
I am given to understand that the target is a 4.2 per cent share of global services by 2022. And that was only the tip of the iceberg, he added.
The first citizen of the worlds fastest growing major economy said this while inaugurating GES and launching a portal on 12 Champion Sectors in Services in Mumbai on Tuesday.
Speaking on the occasion, the President welcomed around 500 international delegates who are participating in this exhibition from about 100 countries. He commended the Ministry of Commerce and Industry, the Government of Maharashtra, the Confederation of Indian Industry (CII) and the Services Export Promotion Council (SEPC), for the initiative. He expressed confidence that it would promote the Indian services domain and enlarge and deepen Indias engagement with the global services sector. He stated that the launch of the 12 Champion Sectors is a bold new step that will contribute to both Indias economy and the global economy and will also help create jobs.
The President said that the services sector represents a vibrant and expanding component of the global economy. Today, services dominate in terms of employment, value addition, productivity and innovation. The pace of technology is intensifying the contribution of services in other sectors including agriculture, infrastructure and manufacturing.
It would not be an exaggeration to say that the services sector forms the backbone of the 21st century global economy.
The President said that, in India, the services sector contributes 61 per cent in gross value added. With its young population, large talent pool and comfort with technology, India has natural advantages in the sector and is set to become even more of a provider of services to the world.
The President said that the early Industrial Age and the traditional manufacturing economy created jobs in factories and encouraged entrepreneurship in the form of ancillary units and workshops. Today, we are looking at small but exciting start-ups in the services space. Technology has emerged as an enormous enabler and allowed local services companies to go national or even global. In India, which is the third largest centre of startups in the world, this has helped create a generation of young entrepreneurs, of men and women with hunger and ambition.
In India, which is the third largest centre of startups in the world, this has thrown up a generation of young entrepreneurs, of men and women with hunger and ambition. Government programmes such as Start-up India and the Mudra Yojana, which has provided capital to 120 million grassroots businesses, have seeded a culture of entrepreneurship, largely in services. I am confident that some of these start-ups will grow into giants in the years and decades to come, said the President. A billion mobile phone users, 500 million citizens on the Internet and a determined push for financial inclusion using technology as well as for digital payments have collectively deepened Indias services story.
The minister said the services would be growing at an accelerated rate. The government was working on several new areas such as yoga, auryveda and Yunani that are related to lifestyle as well as software and artificial intelligence.
Consequently, there export of services was likely to overtake that of merchandise in the coming years. The minister informed that the government was working with the World Trade Organisation (WTO) on services sector facilitation.
We are working on catering to the rising aspirations by making sure that the services sector will create millions of new opportunities for the youth, added the minister. Six districts have been identified across the country for developing the services economy.
With the rapidly rising Internet-enabled population, growing education levels accompanied by development across sectors, and an energetic and innovative cohort of young people India enjoys multiple advantages in the emerging technology-led services space. This converges well with the technology disruption where manufacturing and services are increasingly becoming inseparable, said Rita Teaotia, Secretary, Department of Commerce, Ministry of Commerce & Industry.
It was with this perspective in mind that the government had identified 12 champion sectors to power Indias push in the global services scenario and that were announced at the inaugural. The 12 champion sectors are IT & ITES, tourism and hospitality, healthcare, transport and logistics, accounting finance, media & entertainment, legal services, communication services, construction and related engineering services, environmental services, financial services and education services. The identification of these champion sectors will enhance the competitiveness of Indias services sector through the implementation of focused and monitored action plans thereby creating GDP growth, creating more jobs and increasing exports to global markets. Issues such as credibility, standardisation, quality and a robust financial ecosystem are some of the concerns which will be addressed through this champion sector initiative and will further leverage the services capital already available in India, asserted Teaotia.
Also addressing the GES inaugural, Devendra Fadnavis Chief Minister, Maharashtra thanked the Commerce Ministry for selecting Maharashtra as the partner state for the exhibition. There cannot be a more opportune time to organise this exhibition because our economy is growing at a faster rate as compared to the other global economies. What we aspire for in future has to be realised through the rapidly growing sectors and services happens to be one of the fastest growing sectors that can leapfrog our economic growth.
Earlier, presenting his welcome address Rakesh Bharti Mittal, President, Confederation of Indian Industry (CII), pointed out the expanding share of Indias services sector in export growth and employment generation. Referring to the platinum jubilee of the Indian independence in 2022, he said, ôAt 75 India will ensure that it becomes a $5 trillion economy by 2025 and services will be expanding to $3 trillion in size. The incredible rise of Indias software services, which is now half of the global average, has captured the mindspace of the world and energised the brand value of India. But I believe that there is much more that India has to offer.ö He hoped that this yearÆs edition of GES would go a long way in productive discussions on the opportunities available in the countrys services space.
Anoop Wadhawan, Special Secretary, Department of Commerce, delivered the thanksgiving address on the occasion. All dignitaries were presented with profiles of the 12 champion sectors.
Organised by the Department of Commerce, Ministry of Commerce and Industry, Government of India, Government of Maharashtra, CII and SEPC, GES 2018 is one of its kind mega event in India. The host city of Mumbai, also the commercial capital of India, provides an unparalleled opportunity to showcase the best of India's services to the world and also bring what the world has to offer to India.
The first edition of GES was launched by Prime Minister Narendra Modi in 2015 in New Delhi. Subsequent editions were inaugurated by the President of India in 2016 and 2017. The past three successful editions of GES have generated impressive traction in business in various services sectors amongst participating countries.
Post the success of the last three editions at Delhi NCR, Ministry of Commerce has chosen Mumbai as the location for this edition, since Mumbai is the financial capital. In the past four years, GES has grown from strength to strength and this year it will showcase 22 sectors such as IT, telecom, banking and financial services, education, environment, healthcare, yoga and wellness, skilling, logistics, tourism and hospitality among others. About 445 foreign participants from 100 countries; over 628 exhibitors from across the world and over 50,000 trade visitors are expected at the four-day event. Scores of pre-registered B2B, B2G and B2C meetings are scheduled to take place and over 14 State Governments are participating.
Services sector will contribute $3 trillion to Indias GDP
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Meanwhile, these champion sectors will not only going to grow the services sector domestically, but also globally. This will create a huge employment opportunity in India as well as foreign direct investment. This will also have a spin off effect on other sectors too. This is what we are planning.
- Manish pant (With inputs from Rahul Kamat)