The government has 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 on Tuesday that service exporters should also adopt the same strategy as Indian merchandise exporters, who diversified their markets and tapped new economies.
"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," Mr Sharma said at the Services Conclave organised in Delhi jointly by the Confederation of Indian Industry (CII) and the Commerce and Industry Ministry.
Besides IT and telecommunication, there is a need to focus on services such as healthcare, tourism and financial services, Mr Sharma said. He also said in global trade, the share of India's services sector was "still very slow".
"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."
On visa curbs adopted by some developed countries, he 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.
The Commerce and Industry Minister 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 demand of CII Services Council Chairman Malvinder Singh for setting up a task force on the sector and a services competitiveness council, Mr 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 per cent to its GDP, 35 per cent to employment, 25 per cent to total trade, 40 per cent to exports, 20 per cent to imports and account for over 50 per cent of foreign direct investment into the country.
In 2012-13, the export of services was valued at $146 billion, while imports were $81 billion.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
