India should further unleash energy in services sectors so as to provide services globally at the most competitive cost, Finance Minister Arun Jaitley has said.
Efforts should be taken to leverage on the lower wage cost so as to get the better of other low cost economies, Jaitley said in his address at the first-ever Global Exhibition of Services, organised jointly by Confederation of Indian Industry and Commerce Ministry here on Saturday.
Jaitley also noted that sectoral limits on foreign direct investment no longer made sense in an era when restrictions could be breached through technology.
He cited the examples of satellite-based television channels, ability to read all international newspapers on the internet and even India lawyers providing opinion to foreign counterparts as instances where technology has helped defy services limits.
LOW WAGE BILL
“For the first time in last three decades, our wage bill is relatively cheaper. Are we in a position now to provide globally competitive services of high quality at the most competitive cost?
We have to realise that ultimately it is now between us and the other low cost economies that the future lies”, Jaitley said.
The Finance Minister said that India had the necessary prerequisites for building its advantage in services - a large and growing population, a reservoir of rich and varied human resources and a population which demands quality services.
“While in other major sectors - agriculture, manufacturing and mining - there are a number of regulatory and other challenges and which come in the way of unleashing our latent potential which is not the case with services where government intervention is minimal”, he said.
Srivats.kr@thehindu.co.in