Policy support for services sector

Thrust on services sector in the upcoming Export Policy 2015-18 is no doubt an appropriate move in the context of the country's services sector and its potential for growth. The export policy, now at its draft stage waiting to be placed before the cabinet, has reportedly stressed high importance on certain specific service-providing industries. While in the past, the practice was mainly confined to identifying some products for government patronage and incentives as thrust sector products, this time inclusion of the service industry in the export policy for such a favour is expected to significantly contribute to its growth.
The service sub-sectors, identified for government support, include tourism, architecture and engineering and consultancy services. The ministry of finance (MoF) is reported to have endorsed the move, since incentives in various forms for the desired boost to these sectors will need funds to be handed by the finance division. Information technology (IT) has been grouped along with pharmaceuticals, light-engineering, agro-products, herbal, and ship-building as emerging sectors for exclusive incentive packages.
Providing incentive package, including that of cash, has been integral to the government's successive export policies, although the parameters that have so long been followed for awarding a sector or rejecting another have been a matter of debate.  There is thus a logic in seeking a reasonably fair treatment for sectors which are getting less than they deserve, and sectors that are not at all considered for the benefits. Although the government reviews the overall export scenario before preparing periodically its export incentive package, it is often subject to criticism for being an exercise not based on meticulous homework. This is to say, incentives should be meant for promoting productivity of potential sectors that in turn can materialise in higher earnings. It is in this context that inclusion of some of the prospective service sectors reflects the wisdom of the authorities. This is particularly so because services exports are currently experiencing a stupendous growth world over, especially by way of outsourcing in IT, engineering and architectural designing and consultancy services.
A note of caution may not be out of place here. Since the export policy is basically a compilation of recommendations meant to be implemented, its priorities in getting the required financial support do not constitute any compulsive binding on the part of the government. This is where things do not always fall in place as planned. However, given that the export policy is formulated in consultation with the businesses and the government and it is the vision reflecting the government's roadmap for a period of three years, promotional programmes must not get ignored by any means. Now that the upcoming Export Policy 2015-18 has put the much-needed focus on services sector, efforts should be there to design a befitting development plan in order that it receives the benefits in a truly meaningful way.