Explore new markets to boost export of services: Sharma

Says regions like Africa have huge opportunities and there you can be more cost competitive

The government today asked companies and industries to explore new markets such as Africa to boost India's export of services.

Commerce and Industry Minister Anand Sharma said just as Indian merchandise exporters diversified their markets and tapped new economies, service exporters should also adopt the same strategy.

"Even for services sector we need to look at other major markets. We have a strong presence in North America. Regions like Africa have huge opportunities and there you can be more cost competitive," Sharma said at the Services Conclave organised here jointly by the CII and the Commerce and Industry Ministry.

Sharma said besides IT and telecommunication, there is a need to focus on services such as healthcare, tourism and financial services. He said the share of India's services sector in global trade is "still very low."

"We need to look at how we can enlarge our presence in the global market...We have to look at how we can reduce transaction costs like delays in cargo and reducing infrastructural bottlenecks," he added.

On visa curbs adopted by some developed countries, Sharma said Indian professionals have contributed a lot to the growth of such economies and movement of skilled professionals should not be hindered.

On the US legislation on immigration reforms, he said there is a differences between immigration and movement of skilled professionals. India has raised its concerns over some elements of US immigration reforms.

"The new regulations affect the movement of Indian professionals, affects visa costs...It will be counterproductive and it is not a healthy approach," he said.

Indian companies support over 280,000 jobs in the US and have contributed over $15 billion to the US Treasury in the past five years.

Sharma also urged the European Union to grant data-secure status to India, which is in talks with the group for a free-trade pact. Lack of this status has prevented the flow of sensitive information to India and affects its IT industry.

On a demand of CII Services Council Chairman Malvinder Singh for setting up a task force on the sector and a services competitiveness council, Sharma said: "I think it is doable."

The government is already drawing up a fresh road map to enhance export of services.

Services in India contribute about 60% to GDP, 35% to employment, 25% to total trade, 40% to exports, 20% to imports and account for over 50% of foreign direct investment into the country.

In 2012-13, the export of services was valued at $146 billion, while imports were $81 billion.