India Now - page 19

S E R V I C E S E X P O R T S
COVE R S TORY
17
|
APRIL-MAY 2015
& entertainment, logistics, space, R&D,
professional services and IT and ITeS.
The country already has a dedicated
body, the Services Export Promotion
Council (SEPC), an organisation set up
by the Ministry of Commerce and Indus-
try in pursuit of this goal. The SEPC, in
over six years of its existence, has now
an impressive 1,800 strong membership
base representing stakeholders from
across the 14 service sectors in India. It
was a partner along with the Confedera-
tion of Indian Industries (CII) in the first
GEC 2015.
The Big & the Emerging
At the GES 2015 platform, the Prime
Minister, in his inaugural address,
emphasised the importance of making
“the world think of India beyond infor-
mation technology and yoga”. That said,
India’s IT services export performance is
certainly an example worth implement-
ing in other industries. According to
KPMG India, computer and IT services
account for close to half (~46 per cent)
of services exports at ~US$ 90 billion.
Industry body Nasscom estimates that in
FY 2015-16, IT exports including software
services and products from India will
grow by 12 to 14 per cent and add US$ 20
billion to the overall revenues of US$ 146
billion. Union Commerce Minister, Ms
Nirmala Sitharaman, on the eve of GES
2015, too had emphasised on the leader-
ship of the IT services sector stating that
the share of computer services was 46
per cent in the US$ 151.5 billion worth
services exports in 2013-14. From the
above, it is obvious that India’s strength
lies in its IT and related services sectors.
It was in this context that the Prime
Minister called for a scientific approach
that not only capitalised on India’s inher-
ent strengths in the services sector, but
also matched it to the needs of the other
countries.
Mr A G Rao, Group Managing
Director, ManpowerGroup India,
forecasts that the sector will see
export revenue growing by 12–14
per cent this financial year, mainly
fuelled by growing demand among
global corporations for new services such
as digital technology, mobile applications
and cloud computing. As companies
face increased competition, they will look
to move up the value chain and boost
growth by tapping high-margin business-
es including artificial intelligence and
automation. This will also fuel growth.
India will also see demand in sectors
including financial, professional services;
communication and services related to
broadcasting; public administration, util-
ity services, etc. There will be a strong
demand for specialists, from domain
specific professionals to data analysts
and data scientists emanating from the
demand for big data analytics and cloud
based services. After IT, transport and
travel services are the next big contribu-
tors according to KPMG India, account-
ing for ~23 per cent while consulting and
professional services contribute another
10 per cent of total services exports.
The domestic professional services sec-
tor is in the growth phase, as the demand
for such services and the consequent
supply is increasing. “India has already
established itself as one of the world lead-
Combined value of
IT, Telecom, Tourism,
Healthcare and
Logistics services
sectors in 2014. The
value is a quarter of
India’s GDP.
US$ 500
billion
EXPORTS TO TOUCH
NEARLY US$ 100 BILLION IN FY 2015
FY 2015E: 12.3 per cent Y-o-Y growth
US$ billion
Source: Nasscom
IT services
BPM
ER&D,
Software
Products
Hardware
Total
55
23
20
0.4
90
1...,9,10,11,12,13,14,15,16,17,18 20,21,22,23,24,25,26,27,28,29,...62
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