BackGovt considering liberal visa policy to boost services sector
Commerce and industry minister Nirmala Sitharaman says a liberalized visa regime helps in promoting trade in services such as tourism and education
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New Delhi: The government is considering a proposal to relax the visa regime of the country to promote trade in services, commerce and industry minister Nirmala Sitharaman said on Monday.
Replying to a question in the Lok Sabha, she said a liberalized visa regime helps in promotion of trade in services in different modes of supply, particularly mode II which includes tourism, medical value travel and education services.
“A proposal to further liberalize the visa policy is under consideration in ministry of home affairs in consultation with all stakeholders," Sitharaman said.
She said her ministry advocates for a liberal regime and adequate safeguards and works with the home ministry which deals with the subject.
The services sector has emerged as a prominent sector in India in terms of its contribution to national and state income, trade flows and foreign direct investment (FDI) inflows. It contributes about 60% to the country’s gross domestic product (GDP). The sector also contributes around 28% to job creation. Its contribution to total trade is 25%, around 35% to exports and 20% to imports.
Replying to a separate question, she said India’s cotton imports during October 2015-June 2016 dipped to 8.03 lakh bales from 8.75 lakh bales in the same period the previous year.
To another question, she said India and the European Union broad-based Bilateral Trade and Investment Agreement (BTIA) negotiations started in 2007 and 16 rounds of negotiations have been held so far.
Recently, three meeting of India-EU BTIA negotiations have been held—two were held on 18 January and 15 July in India, and one in Brussels on 22 February. India is committed to an early and balanced outcome of the pact, she said.
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