New catalyst to promote services export

The commerce ministry is planning to introduce a special scheme for the promotion of exports in services to help boost service exports in new areas. As of now, exports in the service sector are mainly restricted to the software industry.
Commerce minister Arun Jaitley said the new policy will allow import of consumables, office and professional equipment, spares and furniture up to 10% of the average foreign exchange export earnings in the previous three years.
Since many of the sectors are yet to make a beginning in exports, it has been decided to extend this facility to new comers against bank guarantees of a similar value and subject to actual user condition. The scheme is expected to particularly help the health sector which has already been identified as a focus area in budget 2003-04.
India is being projected as a major destination for health services in the future. The policy has also extended the advance licence scheme to the tourism sector. The sector already enjoys the benefits of the EPCG scheme which has been made more flexible and attractive.
Recognised hotels in the three star and above categories and other registered service providers in this sector will be allowed free import of consumables and spares up to 5% of their foreign exchange earnings of the previous three years subject to actual user condition. This will, however, not be extended to sensitive items in the negative list which will be notified for this purpose.
Since there is no uniform standard for collecting reliable statistics for export of services, the government will set up a group consisting of representatives of the department of commerce, central statistical organisation (CSO), RBI, DGFT and director-general of commercial intelligence and statistics to formalise a system for collection and maintenance of data relating to export of services.