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.