Lok Sabha Question No. 3517 (UNSTARRED), answered on 2023-03-22
Subject: Service Exports
Ministry: COMMERCE AND INDUSTRY
Asked by: Pocha Brahmananda Reddy

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 3517 TO BE ANSWERED ON 22 nd  MARCH,2023

## SERVICE EXPORTS

## 3517.   SHRI POCHA BRAHMANANDA REDDY:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) the details of services exports in the last three years, category-wise;
- (b) the details of services exports as a percentage of total exports in the last three years;
- (c) whether the Government has taken any steps to boost services export;
- (d) if so, the details thereof and if not, the reasons therefor;
- (e) whether  the  Government  has  formulated  any  roadmap  or  policy  for  boosting  services export; and
- (f) if so, the details thereof and if not, the reasons therefor?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

- (a): As per Reserve Bank of India's (RBI) Balance of Payment Data, Exports of major services categories (in million USD) for last 3 years is as follows:

|   S.No. | Services Sector                                           | 2019-20   | 2020-21   | 2021-22   |
|---------|-----------------------------------------------------------|-----------|-----------|-----------|
|       1 | Manufacturing services on physical inputs owned by others | 232       | 296       | 501       |
|       2 | Maintenance and repair services n.i.e.                    | 194       | 159       | 243       |
|       3 | Transport                                                 | 20,988    | 21,854    | 32,660    |
|       4 | Travel                                                    | 29,998    | 8,483     | 9,099     |
|       5 | Construction                                              | 3,096     | 2,620     | 2,645     |
|       6 | Insurance and pension services                            | 2,431     | 2,376     | 3,316     |

| 7.   | Financial services                                       | 4,734   | 4,338   | 5,472   |
|------|----------------------------------------------------------|---------|---------|---------|
| 8.   | Charges for the use of intellectual property n . i . e . | 934     | 1,310   | 825     |
| 9.   | Telecommunications, computer, and information services   | 96,110  | 103,078 | 125,579 |
| 10.  | Other business services                                  | 45,716  | 49,161  | 58,967  |
| 11.  | Personal, cultural, and recreational services            | 2,207   | 2,336   | 3,164   |
| 12.  | Government goods and services n . i . e .                | 659     | 630     | 803     |
| 13.  | Others n . i . e .                                       | 5,892   | 9,447   | 11,252  |
|      | Services (Total)                                         | 213,191 | 206,090 | 254,527 |

( b ) : The details of Merchandise & Services exports ( in million USD ) and Services exports as a percentage of total exports in the last three years is as follows :

| Year              | Merchandise Exports   | Services Exports   | Total Exports   | Services exports as a percentage of total exports (%)   |
|-------------------|-----------------------|--------------------|-----------------|---------------------------------------------------------|
| 313,361           | 213,191               | 526,552            | 40              | 2019 - 20                                               |
| 2020 - 21 291,808 |                       | 206,090            | 497,898         | 41                                                      |
| 2021 - 22 422,004 |                       | 254,527            | 676,531         | 37                                                      |

(c) to (f): Government  of  India  follows  a  multipronged  strategy  in  order  to  boost services exports comprising the following:

- i. Negotiating meaningful market access through multilateral, regional and bilateral trade agreements.
- ii. Trade  promotion  through  participation in and  organization of international fairs/exhibitions like the Global Exhibition on Services, Higher Education Summit etc. Focused strategies are undertaken for specific markets and sectors.
- iii. Addressing  domestic  sectoral  challenges  and  difficulties  which  are  identified through periodic consultations with the stakeholders. Moreover, efforts are made to

engage with the concerned Ministries/Departments to  pursue  a  domestic  reform agenda to make the services sector competitive globally.

- iv. 'Action Plan for Champion Sectors in Services' to give focused attention to 12 identified Champion  Services Sectors, namely, Information  Technology  & Information  Technology  enabled  Services,  Tourism  &  Hospitality  Services, Medical Value Travel, Transport & Logistics Services, Accounting and Finance Services, Audio  Visual  Services, Legal Services,  Communication  Services, Construction and Related Engineering Services, Environmental Services, Financial Services and Education Services has been approved and Rs. 5000 Crores have been earmarked  to  support  sectoral  initiatives  of  the  Nodal  Ministries/Departments identified for these sectors.
- v. Bureau of Indian Standards (BIS) has set up a dedicated Services Sector Division Council  (SSDC)  to  formulate  Indian  Standards  in  various  Services  Sectors, especially Champion Services Sectors. Wherever possible, the Indian Standards are harmonized with international standards for ensuring that quality of services match global expectations. BIS has already published 143 standards on services till Jan.' 2023.
- vi. Department of Commerce has amended SEZ rules to liberalize Work From Home for SEZ units. DoC has amended the Special Economic Zones (SEZ) rules to insert a new rule 43A vide notification no. GSR 868(E) dated 08.12.2022 to enable Work From Home (WFH) for SEZ units. The decision has been made after duly noting the genuine needs of the industry and also noting the scope of benefits to economies of Tier-2 and Tier-3 cities that such a facility could entail.
- vii. Districts as Export Hubs Initiative highlights the need to channelize the potential and diverse identity in each District of the country to make them export hubs. Under this initiative, the Department of Commerce through Directorate General of Foreign Trade  (DGFT)  works  with  the  States/UTs  and  the  districts  directly  to  create institutional mechanisms to facilitate exports of identified products/services from the districts. Products and services with export potential have been identified in all districts  of  the  country  in  consultation  with  all  the  stakeholders  including  the States/UTs.

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