In a bid to promote growth of the global economy, Commerce and Industry Minister Suresh Prabhu has pitched for inclusion of a comprehensive trade facilitation agreement (TFA) on services in the World Trade Organisation (WTO). He noted that WTO will not be doing full justice to the world economic development unless services sectors are taken on board, so they are trying to work on that. He believed that the planned agreement would help professionals move smoothly from one place to another.
Prabhu has stated that India has submitted a detailed proposal to the WTO to negotiate a trade facilitation agreement in services (TFS). He noted that the proposal aims at liberalising rules for movement of professionals and other steps to reduce transaction costs with a view to boost growth of the services sector. He added that it will focus on issues like liberalised visa regime, long-term visas for business community and freer movement of professionals for the greater benefit of both India and the world, among others.
The minister further pointed out that India is pitching for this agreement as the sector contributes about 60 percent to the Gross domestic product (GDP) and 28 percent to the total employment. He also said that the commerce ministry is working on state-wise plan to promote the services sector. He added that India’s GDP is expected to reach a volume of $5 trillion in the coming years and out of this services segment would contribute about $3 trillion.
