Service sector to help boost overall economic growth: Suresh Prabhu

The government is working on a strategy to promote services exports which have the potential to boost overall foreign shipments and economic growth, Commerce and Industry Minister Suresh Prabhu today said.

"Services exports will boost overall exports in the years to come. Services are going to be a big dominant part of the Indian economy and it will push the economic growth," Prabhu said here at the 52nd convocation of Indian Institute of Foreign Trade (IIFT).

The commerce ministry is working on a strategy to boost share of services in the country's trade.

The government has approved a Rs 5,000 crore plan to promote 12 champion services sectors such as IT, tourism and hospitality.

"More services will be exported from India in the coming years," he added.

Further, he said that certain countries are taking steps which are challenging the entire global trading system and India needs to gear up to face the issues.

Prabhu said that some countries are questioning the rationale of global trade and putting hurdles in trade.

He also asked the IIFT to work on a strategy to deal with these issues.

Speaking at the convocation, Commerce Secretary Rita Teaotia said that services sector accounts for about 62 per cent of the economy.

There is a huge potential to boost growth of the sector, she said.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel