Services sector can attract huge investment, generate jobs: Ram Nath Kovind - Frontline

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Friday, 18 May 2018

Services sector can attract huge investment, generate jobs: Ram Nath Kovind


President Ram Nath Kovind said today that the 12 'champion' services sectors including IT and tourism identified by the government hold a huge potential to attract global investors, promote India's economic growth and generate jobs. In February, the central government had set up a Rs 5,000 crore dedicated fund to promote 12 'champion' services sectors.
“The list...includes business areas with potential for drawing global attention and investment, as well as boosting growth and employment. It also aims to optimise India's skills and knowledge resources,” Kovind said while inaugurating the Global Exhibition on Services here.
It is being organised by the Department of Commerce along with industry chamber CII.
The President said that services sector contributes 61 percent in gross value added and with young population and large talent pool, India has natural advantages in these sectors.
“India's global services exports stood at 3.4 percent in 2016. I am given to understand that the target is a 4.2 percent share of global services by 2022. And frankly that is only the tip of the iceberg,” he said.
He also said that by 2025, India hopes to double the size of its GDP to USD 5 trillion and “of this...the services sector could be a USD 3 trillion contributor”.
Out of this number, the government estimates that the Internet economy, incorporating e-commerce and other applications, could be as high as USD 1 trillion, he added.
He said that programmes such as Start-up India and the Mudra Yojana 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. 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 India's services story,” Kovind said.
Further, he said services like financial, business and professional, and R&D among others, have accounted for 57 percent of cumulative FDI inflows since April 2000.
“In the first half of 2017-18, I am told they accounted for almost two-thirds of FDI inflows. These numbers are telling,” he said.
The President also launched India services logo and a portal on these champion sectors.
The commerce ministry is working with different ministries to formulate separate plans for the 12 services to boost growth in these segments.
The 12 sectors include Medical Value Travel, Transport and Logistics, Accounting and Finance, Audio Visual, Legal, Communication, Construction and Related Engineering, Environmental, Financial and Education.

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