Services sector an agent of change for the country, says President

Speaking on the occasion, the President said Services sector has emerged today as an agent of change for the country.

This sector drives the Indian economy in an inclusive and equitable manner. It is the ‘sector of the current millennium’, in terms of generating employment, skill development, bringing in FDI, enhancing trade and boosting strategic partnerships, the President said.

The President said India has one of fastest growing services sectors in the world with annual growth rate of above 9% since 2001.

The contribution of Services Sector of India to overall GDP has increased sharply, from 41% in 1990–91 to 66% in 2014–15. In this context, the Global Exhibition on Services (GES) is a much-needed forum to give global visibility to the need to encourage trade in services. The sector with its wide outreach can surpass geographical boundaries and unite nations through the common thread of offering skills and capabilities, he said.

The President said Services sector will remain for India the key driver of economic growth. It has the potential to lay the path for India to migrate from a developing to a developed economy.

It is, therefore, important to design and implement a services-driven development strategy within a coherent and comprehensive policy framework ensuring linkages with key policy areas and overall national development objectives, the President said.

The President said there exists a positive correlation between the extent of liberalization and growth in different service subsectors in India. The services that have been liberalized the most in terms of trade and FDI policies have experienced higher growth rates and employment creation opportunities.

He said the results of the Services sector post initial era of liberalization warrant that the process of reforms has to be further intensified to fully utilize its full potential.