Need to remove barriers, push reforms in service sector: Nirmala Sitharaman

New Delhi: Stressing the need to boost service exports, Commerce and Industry Minister Nirmala Sitharaman said the government will identify "key barriers" facing the sector and then undertake "specific reforms".

The minister discussed about various issues pertaining to the services sector in the meeting of Consultative Committee of Parliament Friday.

"She emphasised on the need to focus on the service sector and identify the key barriers faced by different types of services and then to undertake specific reforms," a statement by the Commerce Ministry Saturday said.

Recognising the fact that better services improve the competitiveness of manufacturing in international trade via reduced costs, the Minister stressed the role of services in the success of "Make in India" campaign.

"The Minister also questioned that when services constitute 57 percent of our GDP, why should our share in world exports of services remain at a low level of 3.24 percent?," it said.

In her opening remarks, Sitharaman stated that services play an important role in the development of many economies of the world.

"Many services are critical inputs in local production and trade...Apart from being a foreign exchange earner, services sector has a critical role in the inclusive growth paradigm of the country in terms of providing significant employment opportunities," it said, adding export of services has a direct bearing in creating more jobs locally.

Sitharaman told the committee that India offers the world abundant human resources including quality professionals who are at par with international standards.

In this regard, she cited an example of her recent visit to Myanmar where India has been offered all help to set up facilities for healthcare including Indian doctors and medical professionals.

The Consultative Committee was informed about the steps being taken by the Department of Commerce to promote export of services.

Besides constituting an inter-ministerial group and various sub-groups on respective service sectors, the ministry has also been holding services conclave annually.

"Based on the discussions in the Conclave, the action points were identified and forwarded to the respective administrative ministries/departments for taking follow up action to remove the barriers by making administrative and legislative reforms in the respective sectors," it said.

The ministry in association with Services Export Promotion Council and CII is organising the Global Exhibition on Services (GES) from April 23 to 25 here.