NEW DELHI: In order to attain the tannual services exports target of $1 trillion, the ministry of commerce and industry is planning to set up two separate divisions that will focus purely on services exports by the end to this year. The ministry is also considering to dole out incentives on the lines of Remission of Duties and Taxes on Export Products (RoDTEP) scheme.
“Service exports is doing well and this is the sunrise sector, as well as employment generating sector.The announcement for two separate divisions is already done. We expect it to be functional in full strength by the year end. The ministry is already working with export councils on that,” a senior official said.
In a meeting with the export promotion councils, on August 19, commerce minister Piyush Goyal had asked the export community to target $2 trillion exports by 2030, comprising $1 trillion of merchandise exports and services exports, respectively. He had announced that two separate divisions are being set up in the department of commerce in order to achieve the $1-trillion services exports target.
The overall services exports increased by 16% in June, highest ever in the last four years. India’s total services exports contracted by 3% on year to $206 billion in 2020-21.Officials claimed that the government is also considering a scheme similar to RoTDEP to boost services export after the representation from the service exporters.
In the meeting ahead of the Foreign Trade Policy on October 1, the service industry had requested for incentives similar to those given under RoDTEP. “We are considering it. The quantum will depend after review of the recommendation... there will be several others measures in the upcoming trade policy, to promote exports,” the official added.