Export of Services

There has not been a sharp fall in the services sector exports as compared to the export of commodities during the last three years and the current year. The relevant data of services exports and merchandise exports of India during the last three years and the current year is as under:

                                                                                               (US $ billions)

                        ( P – preliminary      PR- partially revised)

Government of India has taken a number of measures to boost export of services. As per the Foreign Trade Policy (FTP), 2009-14 of the Government of India, all service providers are entitled to Duty Credit Scrip under Served from India Scheme (SFIS) equivalent to 10% of free foreign exchange earned during current financial year. Duty Credit Scrip may be used for import of any capital goods including spares, office equipment and professional equipment, office furniture and consumables; that are otherwise freely importable and/or restricted under

International Trade Clarification based on the harmonized system of coding ITC (HS). Imports should however relate to any service sector business of applicant.

In addition, all service exports are also entitled to the benefits under EPCG Scheme and Export and Trading House status, Market Development Assistance Scheme and other benefits

As regards consultancy and management services, a core group has been constituted under the aegis of Services Export Promotion Council to look into this aspect.

The schemes of the Government for promotion of exports in services have predominant private sector participation.

The information was given by the Minister of State in the Ministry of Commerce and Industry Dr. E.M. Sudarsana Natchiappan in Lok Sabha today.