Mr Rajeev Kher, Additional Secretary, Ministry of Commerce, said that industry should be more proactive in giving inputs to the Government regarding the impact of signing free trade agreements (FTAs).  The general trend is that very little information is provided by the industry as and when such views were elicited from them. 

Mr Kher was speaking at the Services Conclave organized jointly by the Ministry of Commerce and Industry and CII in the capital today.  He was responding to a volley of questions raised by the participants about the not so desirable impact of some of the FTAs to the domestic sector. He clarified that the positive spin offs of such agreements would be there for both merchandise and services exports.  It is important that industry bodies brainstorm  about the likely challenges that they might face on account of the trade treaties and communicate to the Government well in time to incorporate safeguards in the agreements. 

Mr Kher said that market diversification was critical to expanding services trade of the country.  Presently, an organized attempt to scout the markets for services exports is found only in IT and ITeS sector.  A similar initiative should be there for other services as well.  Even in the IT sector, India’s exports are mostly to US and UK.  However, there is huge potential for exporting to China, Japan and Africa, which are holding considerable promises. For tapping exports other than IT and ITeS, he remarked that a new eco system should be evolved for development of such market. “The IT market was mostly self - propelled.  It is important now that we focus on sub sectors in the services like hospitals, media, accountancy  and entertainment not only for expanding the quantum of exports but diversifying them”, he said. 

Mr Kher said that India is now actively taking part in the services trade negotiations.  China, he admitted, is taking proactive steps to develop its services sector not only by having special services export zones but also by promoting imparting foreign languages among professionals and others.   It is making its intention clear to emerge as an important player in the services sector.  India has to take cognizance of it. “Our involvement in the TISA negotiations should be seen from this perspective,” he added. 

Mr Kher said that for promoting services exports, competencies have to be developed across the board and strong and industry-friendly regulatory framework have to be put in place. Equally important is addressing the skill deficit in the country.  

The others who spoke at the session included Mr Partha Sarathi Guha Patra, VP and Head, Corporate Affairs, WIPRO, Dr Rupa Chanda, Prof in Economics and Social Sciences, IIM Bangalore and Mr T S Vishwanath, Principal Advisor, APJ-SLG Law Offices.