Mumbai: Exuding confidence that services sector and technology combined together can raise the GDP of India to $ 5 trillion by 2025, President Ram Nath Kovind said that the contribution of Services Sector in this would be $ 3 trillion. Employment, manufacturing and innovation are dominated by the services. The pace of technology is intensifying the contribution of services in other sectors – including agriculture, infrastructure and manufacturing. It would not be an exaggeration to say that services forms the backbone of the 21st century global economy. The launch of 12 Champion Sectors is a bold new step that will contribute to both India’s economy and the global economy, and will create jobs, the President said further.
He was addressing the gathering after inaugurating the fourth Global Exhibition on Services at Bombay Exhibition Centre in Goregaon organised by Department of Commerce, Government of India and Maharashtra Government jointly. The President also launched the 12 Champion Services on this occasion.
The First Lady Savita Kovind, Maharashtra Governor Ch. Vidyasagar Rao, Chief Minister Devendra Fadanvis, Union Industry and Commerce Minister Suresh Prabhu, Secretary of Commerce Department Rita Tiotiya were conspicuous by their presence on the occasion.
The President congratulated the state Chief Minister Devendra Fadanvis for hosting this exhibition. Maharashtra is one of our country’s economic and investment engines. It has a strong manufacturing base and has complemented this with an accelerating services sector. . In India, the services sector contributes 61 per cent in gross value added. With its young population, large talent pool and comfort with technology, India has natural advantages in the sector and is set to become even more of a provider of services to the world. India’s global services exports stood at 3.4 per cent in 2016. I am given to understand that the target is a 4.2 per cent share of global services by 2022.
With the rapid expansion of its economy, India represents an attractive opportunity for global investors and businesses. In the past four years, the average GDP growth rate has been an impressive 6.9 per cent. For 2018-19, the International Monetary Fund has forecast a growth rate of 7.4 per cent for India. The services sector boom is a key driver.
The President further said that India is the third largest centre of start-ups in the world. This has thrown up a generation of young entrepreneurs, of men and women with hunger and ambition. Government programmes such as Start-Up India and the Mudra Yojana, which has provided capital to 120 million grassroots businesses, have seeded a culture of entrepreneurship, largely in services. I am confident that some of these start-ups will grow into giants in the years and decades to come. A billion mobile phone users; 500 million citizens on the Internet; and a determined push for financial inclusion using technology as well as for digital payments have collectively deepened India’s services story.
In the past four years, it has eased foreign investment regulations in several sectors, including in services such as insurance, retail, aviation and banking. As you know, India is among the largest recipients of FDI inflows. Services like financial services, business and professional services, and R&D, among others, have accounted for 57 per cent of cumulative FDI inflows since April 2000. In Maharashtra is the growth engine of the country, the President said.
Maharashtra economy will be $ 1 trillion: Chief Minister
The role of services sector is important for economic growth and employment generation. India is developing as a country of youth. By 2025 the country’s economy will be $ 5 trillion with Maharashtra becoming the $ 1 trillion economy, said Chief Minister Devendra Fadanvis.
Maharashtra has been at the forefront in manufacturing and services sectors, the Chief Minister said adding that employment generation will get accelerated through the services sector. Special emphasis is laid on services sector to make Maharashtra a $ 1 trillion economy. This is the reason why the state got the honour to organise this global exhibition here, he added. He said that the contribution of services sector to economy is 59 percent and efforts are on to take it to 67%.
Indian economy is growing fast at the global level and the contribution of services sector is remarkable in this growth. Steps are being taken to set up a vast network of facilities to expand the services sector in the state. On the occasion of this exhibition 12 champion services are selected and the state has conducive atmosphere for each one of them, the Chief Minister said. Maharashtra has taken a quantum jump in digital services sector and using this, efforts will be made to expedite the process of development in the state through services sector, the Chief Minister assured. He thanked the Central Commerce Department for organising the global exhibition in Mumbai – the economic and entertainment capital of the country.
Maharashtra takes lead in services sector: Union Commerce Minister
Union Industry and Commerce Minister Suresh Prabhu said that state-wise plan has been prepared to make India global centre in services sector. Employment generation will be done through this on a large scale, he said. Maharashtra has taken a lead in this by organising this global exhibition and participating in it. He said that we will strive to give excellent services to the world through best and skillfull knowledge of various sectors.
12 champion services including finance, tourism, logistic services, media and entertainment, health facilties, construction and engineering, legal, environment, commerce, education, IT and Communication and basic facilities services are selected to be Champion National Services Sectors.
Experts in the field have expressed their minds on this occasion. They included Uday Kotak, Vivek Nair, R Dinesh, Sudhanshu Vatsa, Dr Naresh Trehan, Vinayak Chatterjee, Nishant Parekh, Masud Mallik, Prafulla Chhajed, Pradyumna Vyas, and Hari Nair spoke on finance, tourism, logistic services, media and entertainment, health facilities, construction and engineering, legal, environment, commerce, education, IT and Communication and basic facilities services and opportunities they offered.
On this occasion the President released the Logo and web portal of ‘India Services’. CII Chairman Rakesh Bharti Mittal expressed his thoughts on this occasion. Secretary Commerce Department Rita Tiotiya made introductory remarks. 500 delegates from 100 countries are participating in this exhibition.