Overview Service Industry


Global Exhibition on Services

The first Global Exhibition on Services (GES) held in 2015 in New Delhi received immense traction due to the support, guidance and encouragement of Hon’ble Prime Minister. It is now well on the way to emerging as a regular global platform for the promotion of services cooperation in the world. Setting foot in its 5th edition, today GES is considered a global platform for increasing trade in services, enhancing strategic cooperation and strengthening multilateral relationships between stakeholders from India and overseas.

Importance of Services Sector for Indian Economy

According to the Revised Estimates (2018-19) released by CSO, the services sector with a share of 61.3 per cent in India’s gross value added continued to be the key driver of India’s economic growth in 2017-18. While the growth of this sector in 2017-18 was 17.3 per cent, over the previous year, in terms of gross value added, the growth in services exports and net services at 16.2 per cent and 14.6 per cent respectively in H1 of 2017-18. The Government has taken many initiatives in the different services which include digitization, e-visas, infrastructure status to Logistics, Start-up India, schemes for the housing sector, etc. which could give a further fillip to this sector.

Dubbed as the ‘sector of the current millennium’, services sector drives the Indian economy in an inclusive and equitable manner. In a challenging global environment, services trade is increasingly viewed as an instrument to create jobs, drive national growth and foster exchange of ideas, knowledge and technology. The services sector also contributes significantly to trade in goods through supply chains and e-commerce.

Includes construction services; share computed in current prices

Apr-Feb FY19; as per the latest estimates of Ministry of Commerce

Contribution of Services to Employment through Skilling

The services sector can play a key role in creating highly skilled and more productive job opportunities.  As India   moves progressively   towards becoming a ‘knowledge   economy’ it becomes increasingly important for the country to focus on advancement of skills which are    relevant   to the emerging    economic environment    where   the services    sector   plays    a dynamic   role.  The workforce must have education   and training   that equips and leverages the labour-intensive economy. A large number of services sectors like tourism, M&E, retail, etc require workforce across skillsets and are highly employment intensive.

The sector provides employment to a large share of Indian population. As of 2018, 34.49 per cent of India’s employed population was working in the services sector, according to International Labour Organisation estimates.

FDI in Services Sector

Foreign investments are crucial for India for overhauling its infrastructure sector such as ports, airports, and highways to boost growth. A strong inflow of foreign investment will help improve the country’s balance of payment situation and strengthen the rupee value against other global currencies.

The sector is the largest recipient of FDI in India with inflows of US$ 70.91 billion between April 2000 and December 2018

Role of Services in "MAKE IN INDIA" - Embedded Services

There are sectors where a lot of complementarity exists between services and manufacturing growth e.g. telecom services and telecom equipment manufacturing, electronic hardware & software where a hardware-software combination can accelerate growth of both hardware and software. Other services include healthcare and pharmaceutical sector, shipbuilding along with ship repair & maintenance services, R&D services, biotech, etc. Efficient, reliable and reasonable transport, distribution, finance, utilities, telecommunications and business services are essential for cost effective production and marketing of goods.

It is therefore imperative to increase public and private sector advocacy and awareness, and to mobilize policy attention and resources to boost the sector’s competitiveness. Given the multifaceted contribution of services to national economy and trade, it is critically important to design and implement a services-driven development strategy within a coherent and comprehensive policy framework, ensuring linkages with other policy areas and overall national development objectives. For India, services remain the key driver of economic growth, being the backbone for steady and robust development.

Therefore, a robust services sector acts as a huge catalyst for Make in India and is centric to ease of doing business.

Champion Services Sectors

The ‘India Services’ brand was created by the Ministry of Commerce and Industry, Government of India, to represent the services sector of India. The services sector which represents 61.3 per cent of India gross value added, is a key driver of global trade and a very valuable source of employment. In essence, the services sector is the prime driver of the economy today having overtaken agriculture and manufacturing in terms of growth and size.

This initiative will enhance the competitiveness of India’s service sectors through the implementation of focused and monitored Action Plans, thereby promoting GDP growth, creating more jobs and promoting exports to global markets.

The Hon’ble President of India unveiled a specially designed logo for the GES at the inaugural. The new brand identity for the services sector was launched at the inaugural session of the 4th Global Exhibition on Services (GES 2018) by Mr Ramnath Kovind, Hon’ble President of India on 15th May 2018.

These sectors include some of the largest and most critical sectors with the highest potential for global trade and investment, growth and employment.

The objective is to give focused attention to 12 identified Champion Services Sectors for promoting their development and realizing their potential.

Accounting & Finance

Audio-Visual

Information Technology & Information Technology Enabled Services

Medical Value Travel

Construction & Related Engineering

Legal

Transport & Logistics

Financial

Communications

Tourism & Hospitality

Education

Environmental

The share of India’s services sector in global services exports was 3.3% in 2015 compared to 3.1% in 2014. Based on this initiative, a goal of 4.2% has been envisaged for 2022.

The share of services in Gross Value Added (GVA) was about 61% for India in 2017-18. A goal of achieving a share of services in GVA of 60% (67% including construction services) has also been envisaged by the year 2022

Revised Estimates (2018-19) released by CSO. Includes construction services; share computed in current prices

Year End Review 2018- Ministry of Commerce & Industry, 11 December 2018, Press Information Bureau

Year End Review 2018- Ministry of Commerce & Industry, 11 December 2018, Press Information Bureau

Revised Estimates (2018-19) released by CSO and in current prices terms

Export of Services and India’s Performance

India’s services exports have emerged as a key engine of growth over the last fifteen years. While, India’s services exports registered a CAGR of 8.3 per cent during 2006-07 to 2016-17, in 2015-16, it registered negative growth of (-) 2.4 per cent. Services sector export growth returned to positive territory with 5.7 per cent growth rate in 2016-17, which further increased marginally to 6.3 per cent in 2017-18

The pattern of India’s services exports is somewhat different from the global profile of services exports, reflecting its inherent advantages in certain sub-sectors. India’s overseas services engagement is dominated by ICT and other business services which constitute about two-thirds of its total services exports.

The Government has undertaken various steps towards boosting growth of the services sector. The government introduced ‘Services Exports from India Scheme’ (SEIS) aimed at promoting export of services from India by providing duty scrip credit for eligible exports. Also, the Government of India has identified 12 sectors under the Champion Services Sectors Initiative which is aimed at formulating cross-cutting action plans to promote their growth.

The Economic Survey 2017-18

Apr-Feb FY19; as per the latest estimates of Ministry of Commerce

The Economic Survey 2017-18

Services Imports and India’s Performance

In India’s services imports, it is transport, other business services and travel are the most in demand, with financial services and payments for intellectual property contributing significantly. The composition of imports indicates India’s growing aspiration to leverage services from overseas for its growth and development, and points to its strength as a growing market for the world.

The country has the potential to emerge as a key player in the growing global services trade domain, both as a provider of knowledge-rich services and as a destination for services provided by other countries.

As per the latest data on Balance of Payments released by the RBI, India’s services imports exhibited growth of 8.9 per cent in April-December 2018-19 as payments on transport sector increased by 19.2 per cent. Among the other major services imports, travel grew by 12.1 per cent and business services by 7.6 per cent during the reporting period. Though the software services imports had a share of only 4.5 per cent, its growth stood at 11.8 per cent.

Global Exhibition on Services: An initiative for promoting Services Sector

With an aim to engage Industry and Governments  across the world to promote greater exchange  of trade  in services  between  India and rest of the world, the Department  of Commerce, Ministry of Commerce and Industry, Government of India, in association with  Services  Export  Promotion  Council  (SEPC) and Confederation of Indian Industry (Cll) created a dedicated platform, the Global Exhibition on Services (GES), with an attempt to give the multifaceted Indian services the global visibility they deserve and to simultaneously encourage trade in services at a global level. The sector in its wide outreach can well surpass geographies and unite nations through the common thread of offering skills and capabilities under its umbrella.
GES as an annual event seeks to enhance strategic cooperation and develop synergies to strengthen multilateral relationships between all stakeholders, tap the potential for services’ exports and increase FDI inflow.

Global Exhibition on Services: 2015, 2016, 2017 and 2018

The first Global Exhibition on Services (GES) was inaugurated by Hon’ble PM Shri Narendra Modi in 2015 at Pragati Maidan, New Delhi. At the inaugural session he emphasized that GES will bring India onto the world stage and urged the sector to become the key growth driver of India’s economic trajectory.

The second and third GES in 2016 and 2017 was inaugurated by Hon. President of India in Greater Noida, National Capital Region, India and President’s Estate, Delhi respectively.

The fourth edition of Global Exhibition on Services (GES) held in May 2018 in Mumbai, inaugurated by Hon’ble President of India at the Bombay Exhibition Centre in Mumbai, witnessed convergence of over 628 exhibitors, 500 overseas delegates from 100 countries on a global platform aimed to increase trade in services, enhance strategic cooperation and strengthen multilateral relationships amongst stakeholders. 

As a part of GES, a large number of seminars/ knowledge sessions are organized on diverse topics where expert industry leaders and government representatives deliberate on the various issues facing the services sectors. Many of these explored opportunities in specific geographies like Africa, Gulf region, Australia, and SAARC. Others focused on specific service sectors like Tourism and Culture, Exhibitions & Event Services, Banking & Financial Services, Media & Entertainment, Heath & Medical Value Travel, MSMEs in services and on Education and Skills connecting India to the world.

The GES in subsequent years scaled new heights   in taking   our services   to the global   market place and   in showcasing the India Opportunity. As a dynamic player in the global services sector, India has the potential to build its own brand for services exports where it can be a dominant player and GES furthers the cause of:

  • Showcasing India’s prowess across services sectors before a global audience
  • Positioning India globally in more services sub-sectors
  • Generating concrete business outcomes
  • Creating employment through leveraging services exports

In the past four years, GES has grown from strength to strength and this year it will focus on 12 Champion Service sectors, including, Communications, Transport & Logistics, Health & Wellness, Infra & Construction, Tourism & Hospitality, Media & Entertainment, Education, Accounting & Finance, Banking, Financial & Insurance, Legal, IT & ITES and Environment.

Global Exhibition on Services: 2019

After the success of the past four editions of Global Exhibition on Services (GES), the Department of Commerce, Ministry of Commerce and Industry, Government of India, in partnership with Services Export Promotion Council (SEPC) and the Confederation of Indian Industry (CII), is once again organising the 5th edition of Global Exhibition on Services from 26  – 28 November 2019 at Palace Grounds, Bengaluru, Karnataka.

This will be an attempt towards escalating the Indian services bar in the global arena by exploring 12 Champion Services Sectors, encompassing participation from 100 countries and hosting sector specific knowledge sessions.

GES 2019 will focus on promoting ‘trade and investment’ in services across countries in various sectors and sub sectors. This event is expected to have participation from several countries and Indian State Governments.

GES 2019 will host focussed knowledge sessions on key Champion Services Sectors and will cater to many B2B, B2G and B2C meetings.

Highlights of GES 2019

  • Focus on increasing ‘trade in services
  • Showcasing 12 Champion Services Sectors
  • Over 500 participants from 100 countries
  • Knowledge Sessions focussed on Champion Services Sectors
  • States/Theme Pavilions
  • Huge participation of overseas delegates
  • Overseas delegations led by industry leaders
  • Release of Report on Services Sectors
  • Avenues for partnerships through B2B, B2G, G2G meetings
  • Studio Talks
  • Display of Culture & Cuisine
  • Food Festivals, Cultural Evenings, Networking Dinners

 Target Group

  • Decision Makers
  • Senior representatives of Central & State Governments
  • Officials from Public Sector Undertaking
  • Leaders from Global Private Industries
  • Buyers and Sellers delegations from India and Overseas

Key Sectors at GES 2019

Environment

Accounting & Finance

Communications

Legal

Construction and Related Engineering

Medical Value Travel

Tourism & Hospitality

Transport & Logistics

Education

Financial

Audio-Visual

Information Technology & Information Technology Enabled Services