Table of contents | |
E-Commerce | |
Digital Financial Services | |
Manufacturing vs Services | |
Global Negotiations | |
COVID-19 and Services Sector | |
Way Forward |
The E-Commerce sector experienced rapid growth, particularly following the pandemic, with a significant increase in penetration due to disruptions in consumer behavior caused by lockdowns and mobility restrictions.
Key Facts about the E-Commerce Sector:
Insights from Reports:
Space
Some recent negotiations include multilateral, bilateral, and regional discussions:
India has recently signed comprehensive bilateral trade agreements involving services with countries like Singapore, South Korea, Japan, and Malaysia. Additionally, an agreement on services and investment was made with the Association of Southeast Asian Nations (ASEAN). Regional Participation: While India engaged in the Regional Comprehensive Economic Partnership (RCEP) negotiations, it eventually opted out due to specific sectoral concerns and requests for relaxation in certain areas.
Government initiative: Launched Atmanirbharta Bharat Abhiyan with a focus on converting the challenges posed by the coronavirus into opportunities.
Economic package: An ambitious relief and financial stimulus package of 20 lakh crores announced under the campaign, addressing diverse sectors of the economy.
Emphasis on MSMEs: Significant focus on Micro, Small, and Medium Enterprises (MSMEs), including many startups in the country, with measures aimed at fostering growth and contributing to economic revival.
COVID-19
Revised MSME criteria: The government revised the definition criteria for MSMEs, providing them an opportunity to expand in size and potentially get listed on stock exchange platforms.
Elimination of distinction: Abolished the distinction between manufacturing and services MSMEs, providing a substantial boost to the services sector.
Financial support measures:
Expected impact: Anticipated positive outcomes for MSMEs, facilitating faster growth and enabling them to play a crucial role in economic revival, contributing to the goal of making the country self-reliant.
India serves as an export hub for software services, with the IT outsourcing service market expected to grow by 6-8% between 2021 and 2025.
The services sector, according to the Government, has untapped potential and should view the COVID-19 crisis as an opportunity rather than a challenge.
Post-COVID, new norms are emerging in work, education, entertainment, health, etc., presenting opportunities for the services sector.
Governmental steps needed for sector expansion and growth include:
Software Services
Addressing the sector's dependency on imports by utilizing the abundant and diverse skilled workforce in India.
Indian missions abroad should effectively promote Indian exports, with a particular emphasis on the IT and allied services segment.
While the IT and allied services segment has flourished independently, the government's focused policy interventions, especially at the startup level, can aid growth and address unfair practices.
The resilience shown by the services sector in 2022-23, but downside risks include external factors and a weak economic outlook in advanced economies affecting growth prospects through trade and other linkages.
139 videos|315 docs|136 tests
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1. How has the COVID-19 pandemic affected the services sector? |
2. What are some key challenges faced by the services sector in global negotiations? |
3. How can e-commerce platforms benefit the services sector? |
4. What are some examples of digital financial services that can support the services sector? |
5. What are some strategies for the services sector to adapt and thrive in the post-COVID-19 environment? |
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