India’s services sector exports grew by 7.1 percent in February

16 Apr 2015 Evaluate

India's services sector, which contributes about 60 percent to country's gross domestic product (GDP), has witnessed an exports growth of 7.1 percent to $14.1 billion in February 2015 over services exports of $13.16 billion the same month a year ago. Total services exports during April-February 2014-15 stood at $ 146.46 billion, compared to $167.01 billion in FY 2013-14.

According to RBI data, import of services during the month increased by 23.64 percent to $7.9 billion as against $6.39 billion a year earlier, while imports during April-February 2014-15 stood at $83.69 billion, compared to 88.19 billion of imports during the same period FY 2013-14.

Government has been making all efforts to arrest the fall in exports, especially in Service Exports and in order to give a push to its services exports beyond IT/ITES, is organising a global exhibition on services in the third week of April. In services exports, India fell two places to eighth position in 2014, down from sixth in the previous year. India was overtaken by Japan and the Netherlands even as the value of the country’s commercial services exports went up to $154 billion from $151 billion.

The government has also decided to review the tax incentives scheme extended to services exports after six months. In an effort to give a push to services exports, the department of commerce launched Services Exports from India Scheme or SEIS on April 1 under the foreign trade policy for 2015-20, extending concessions in the form of fully transferable duty credit scrips ranging between 3% and 5% of exports.