“Services exports can create huge employment, as it is more labour-intensive than the manufacturing sector, which is becoming more and more mechanised. The services sector will always involve the human angle… and that can boost employment,” Prabhu told PTI.
He was speaking here on the sidelines of the MCCI Economists’ Forum-Achieving USD 2 trillion exports by 2030.
Prabhu also underscored the need for skilling in the services sector to convert quantity to quality.
The Union government had recently formulated an ‘Action Plan for Champion Sectors in Services’, which included information technology, tourism and hospitality, transport and logistics, medical value travel, legal, accounting and finance, and communication, among others.
“I believe that the basket of India’s services sector exports can expand dramatically, as there are so many avenues… take for example elderly care… this is going to be a very important aspect of services, and it can be facilitated remotely through technology,” Prabhu said. On India’s target of USD 2-trillion exports by 2030, Prabhu who is also a former railway minister said it is a “challenging, demanding and ambitious” goal, which will require strategies to be developed through wider consultation with stakeholders, and coming up with workable solutions. “You have to also keep in mind competition from countries like Bangladesh and Vietnam. But, exports are critical for all-inclusive growth, creating jobs, gaining access to overseas markets, helping build quality and encouraging competitive pricing,” said Prabhu.
According to official data, merchandise exports stood at USD 447.46 billion during the 2022-23 fiscal year, while services exports clocked around USD 322.72 billion.