Need of data to analyze true potential of services sector, says industry executive 

SEPC DG Abhay Sinha

Services Export Promotion Council Director General Abhay Sinha has said that India needs granular data on services export for the sector to hit its true potential.

“Whatever little data we have is RBI (Reserve Bank of India) data on exports. There is no other data available in this sector. We do not get bilateral trade data, making analysis impossible,” Sinha told Moneycontrol on areas of concern for the service exports industry.

Services are the largest contributor to India’s economy and trade. The country exports services including travel, transportation, insurance, software, business process management, financial services and communication.

Total exports of services from India in 2020-21 were worth $206 billion, which is expected to reach $ 325 billion by 2022-23.

The Services Export Promotion Council, said Sinha, has highlighted the issue to Commerce Minister Piyush Goyal.

“The commerce ministry has assured us of looking into the issue, we are hopeful some model will emerge on this,” Sinha added.

A standing committee on commerce, in a report released on March 20, 2023, highlighted the importance of the services trade sector and recommended that country-wise export data be made available in the public domain.

The panel noted that the surplus accrued from service trade contributed to reducing the Current Account Deficit. It is of utmost importance that service exports are reinforced with support measures, the report said.

“Country-wise export data of services is not shared by RBI; therefore, it is recommended that a channel for exchange of information must be established between the Department of Commerce and Reserve Bank of India, in order to facilitate the Department in taking corrective measures and formulate Schemes supported with factual data and the data may also be placed in the public domain,” the report said.