Govt to soon compile services trade data

The government is planning to compile data on trade in services similar to what it does for trade in goods through the Kolkata-based Directorate General of Commercial Intelligence and Statistics (DGCI&S).

An inter-ministerial group under the Ministry of Commerce and Industry has also been formed to bringing changes in the services sector. So far eight working groups have been created under the group with a special focus on information technology (IT), telecom, financial services, research and development (R&D), tourism and logistics.

“The DGCI&S will capture the data on services trade that will help us in creating competitiveness in the sector. The data will be compiled with the help of RBI and CSO (Central Statistics Office). The entire exercise might take a year to take off. Mechanism for capturing data related to the sector is not good. It lacks substance and we also do not have survey based data,” Rajeev Kher, additional secretary, department of commerce, told reporters here today.

Presently, the ministry obtains data on services from the Balance of Payment data prepared by the RBI when negotiating trade deals with other countries on services.

Interestingly, India’s share of services exports in the world exports of services, which increased from 0.6% in 1990 to 1.0% in 2000 and further to 3.3% in 2011, has been increasing faster than the share of merchandise exports in world exports, according to Kher.

It is in this context and to involve the participation of business communities in the exercise, the ministry along with Centre for WTO Studies (IIFT), CII and FIEO is jointly organising a services conclave from November 12-13.

Services exports amounted to a meager $8.9 billion in 1997, but over the years services exports have grown substantially rising to $110 billion in 2010. During April-July period of financial year 2013-14, the cumulative services receipt (exports) has amounted to $50.93 billion.