Service sector

SEPC: Services Sector Exports Expected to Hit $350 Billion This FY : SEPC

NEW DELHI: Services sector exports are expected to hit $350 billion in the current fiscal year, SEPC said on Wednesday. The export target for services and some goods sectors was discussed on Wednesday during a meeting with Trade and Industry Minister Piyush Goyal.

Abhay Sinha, deputy chief executive of the Services Export Promotion Council (SEPC), said the target had been revised from $300 billion to $350 billion for 2022-23.

India’s service sector exports hit a record high of around USD 250 billion in FY22.

“The target is set taking into account sectors that have not been able to perform for the past 2 years due to the pandemic and which will hopefully rebound in FY23, such as travel and tourism, hospitality, education and entertainment.

“In addition to this, there are certain sectors that will be emphasized in FY23 … (such as) market research, consulting, engineering and construction,” he said. he declares.

The President of the Federation of Indian Export Organizations (FIEO), A Sakthivel, pointed out some problems during the meeting.

Sakthivel said he had urged the ministry to push for a planned program providing marketing support with a corpus of at least Rs 1,000 crore to encourage MSMEs to showcase their products in the international market.

He also raised the issue of high input prices which pose a challenge for exporters, as buyers are now reluctant to raise prices proportionately given sufficient stocks.

“Given the growing trade deficit and surging imports, a committee could be formed to assess the import trend and encourage domestic production of these products to reduce the growing deficits,” Sakthivel said.

He added that there was a lack of clarity regarding the export of products to Russia as a result of US sanctions.

The US administration has exempted the food, pharmaceutical, medical equipment and energy sectors from these sanctions, thus placing all other segments under sanctions. “However, Russian banks tell exporters that they can export any product and the payment will be credited to their account,” he added.

Unfortunately, Indian banks do not know whether in such cases they will issue the eBRC (electronic banking certificate of achievement), especially for sectors other than the three exempted ones, he said, adding some sort of clarification to Indian banks will come in very handy.