Despite global market challenges and recession worries, India’s service exporters are targeting US$ 350 billion in exports in the current fiscal year, a 37% increase over last year. They are banking on the post-pandemic resurgence of major industries like tourism, hotel, and entertainment. They claim that this will assist to reduce the growing trade and current account imbalances.
However, the services exports industry is seeking government assistance and incentives under the new foreign trade strategy, which is expected to be presented in September, according to DG, Services Export Promotion Council (SEPC) Abhay Singh.
India’s services exports in the fiscal year 2021-22 set an all-time high of US$ 254 billion despite the travel and tourist, aviation, and hospitality industries being badly damaged by the epidemic. According to World Trade Organization forecasts, India’s services export market share increased from 3% in 2010 to 3.5% in 2019 and 4% in 2020 and 2021
Meanwhile, Federation of Indian Export Organisations (FIEO) President A Sakthivel flagged certain issues in this regard. He said he has urged the ministry to push for a planned scheme providing marketing support with a corpus of at least Rs 1,000 crore to encourage MSMEs to showcase their products in the international market.
He also raised the issue of high prices of inputs that are posing a challenge to exporters as buyers are now reluctant to increase prices proportionately in view of sufficient inventory.
“In view of increasing trade deficit and surge in imports, a committee may be formed to evaluate the trend in imports and encourage domestic production of such products to reduce the increasing deficits,” Sakthivel said. He added that there is a lack of clarity regarding the export of products to Russia following the US sanctions.
