Commerce Ministry to Create System For Data on Exports And Imports.

NEW DELHI: After batting in the blind for a while, the commerce department has realised the need for timely and relevant data on services trade before it goes into negotiations with other country for an agreement on services.

As part of its quarterly balance of payment data, the RBI releases data on services exports and imports for just a handful of sectors out of a total 162 sectors.

The commerce department wants to put in its own system in place to generate disaggregated data- both country-wise and sector specific. "We want a monthly flow of data for all major sectors," an official told ET.

The department plans to coordinate with agencies like the Central Statistical Organisation to design the system, drawing from best international practices. But creating the necessary architecture will take time as it would require extensive research and mobilisation of resources.

The Director General of Commercial Intelligence and Services (DGCIS) will carry out two pilot projects in the health and tourism sectors. It has to be gauged whether it will be a practical exercise, the official said. The entire project could take up to two years.

"I hope DGCIS will be able to come out with credible numbers at frequent intervals as there is a dire need for such data," IIFT director general K T Chacko said.

Getting reliable and fast data on services exports is lot more difficult than generating them for merchandise exports, which flow through regulated ports and airports. Service exporters do not file shipping bills at customs station where a memo for the exports is issued, and in the case of IT services the delivery is mostly electronic. The best way of capturing flows is through financial inflows/outflows, and the same is recorded by the RBI.

Exports from the services sector recorded a more than sixfold increase in the last nine years from $20.76 billion in 2002-03 to $131.97 billion in 2010-11, according to the Services Export Promotion Council. India expects a big boom in its services exports in years to come as a large number of developed countries with ageing populations are looking increasingly India and China for meeting their services need.

Appropriate data would also help the government in its trade negotiations, like the ongoing talks with the EU and the Asean, where it could prioritise its demands according to scope.

Source : economictimes.indiatimes.com