Govt aims to showcase services trade potential through global exhibition

The three-day event will be crucial to market India's services trade potential to trade partners from abroad

Aiming to bolster India's services trade globally, the commerce ministry is arranging the second Global Exhibition on Services (GES) from Wednesday.

With the 2015-16 financial year witnessing dismal merchandise trade, the government is betting big on services trade, sources in the ministry said. Weak global conditions like a crash in commodity prices, sluggish Chinese economy and tepid demand has seen India's merchandise trade get stuck at $ 261 billion for the last financial year.

The three-day GES event will thus be crucial to market India's services trade potential to trade partners from abroad. This includes countries like Australia, Bangladesh, Canada, China, Germany, Kenya, Malaysia, Russia and United Kingdom, who, among others are expected to participate.

 

The government had earlier stated that almost 50 per cent of its current account deficit was met from exports in services. The sector also contributes 53 per cent of the country's Gross Domestic Product, 51 per cent of foreign direct investment and 28 per cent of employment.

Earlier this month, Commerce Secretary Rita Teaotia said the flagship Make in India programme should focus equally on services trade and exports. She had added that the exhibition would allow the government to look at issues of strategic importance with regards to foreign trade partners.

India currently accounts for less than 2 per cent of the global services exports and comes in as the 8th largest services exporter. Figures released by the Reserve Bank of India on Tuesday showed the country exported services worth $ 64.60 Bn in the April- February period the last financial year. This was 6.55 per cent lower than the $ 69.13 Bn worth of services exported in the same period of the previous year.

Industry body Confederation of Indian Industry, which is partnering the government said the event is estimated to attract more than 500 foreign delegates and 20000 visitors. Various states namely Chhattisgarh, Karnataka, Kerala, Madhya Pradesh and Manipur will also set up stalls. Overall, around 450 exhibitors from India are expected.

Trade experts have called for a need to fix targets for the sector as also understand how the global trade is really governed either through multilateral or bilateral agreements. In a recent interaction with the ministry, experts have pointed out there is a need for leveraging India's capabilities in sectors other than IT services and where the country is a strong performer.

This time, the exhibition is also focussing across diverse sectors like Banking & Financial Services, Education, Healthcare, Media & Entertainment and small and medium enterprises in services.

Ironically, India is also not part of the Trade in Services Agreement (TiSA), which is currently being negotiated among 23 countries outside the purview of the World Trade Organization. Major powers like the United States, Australia and the European Union are part of TiSA, the talks for which was launched in 2012. Together, these countries account for 70 per cent of world trade in services.

Aiming at opening up markets and improving rules in areas such as licensing, financial services, telecom, e-commerce, maritime transport, and professionals moving abroad temporarily to provide service.

India had been also pushing for greater access in the services market under the Doha round of talks at the World Trade Organization (WTO). However, this has not seen much headway due to lack of interest on the part of the developed countries.