THE GLOBAL EXHIBITION ON SERVICES (GES) 2019.
Context: The 5th Global Exhibition on Services (GES) is being held at Palace Grounds, Bengaluru from November 26 to 28.
Delegates from over 100 countries are to participate in GES 2019.
- GES is the largest services show in India and is expected to showcase India’s capability across various services sectors before a global audience.
- It is a confluence of various Service Sectors in India.
- It provides an opportunity for symbiotic growth among nations.
- It provides a platform for Government and Industry interactions.
- As a part of GES, a large number of seminars / knowledge sessions are organized on diverse topics where expert industry leaders and government representatives deliberates on the various issues facing the services sectors.
- It has explored opportunities in specific geographies like Africa, Gulf region, Australia, and SAARC.
- It also focuses on specific service sectors like Tourism and Culture, Exhibitions & Event Services, Banking & Financial Services, Media & Entertainment, Health & Medical Value Travel, MSMEs in services and on Education and Skills connecting India to the world.
- As a dynamic player in the global services sector, India has the potential to build its own brand for services exports where it can be a dominant player and GES furthers the cause of:
- Showcasing India’s prowess across services sectors before a global audience
- Position India globally in more services sub-sectors
- Generate concrete business outcomes
- Create employment through leveraging services exports
SERVICE SECTOR IN INDIA
- Service sector contributes to 60 per cent of India’s GDP and 70 per cent to that of Karnataka.
- Over 55 per cent of FDIs in India are from services.
- Service sector generates more employment than any other sector and has a huge potential for India in healthcare industry which is a $100 billion business globally with India’s share only about $1 billion.
- More than one crore people travel globally for healthcare every year but India receives only 2-3 lakhs.
- The sign of a growing economy is directly proportional to a higher contribution from the service sector. In many developed countries up to 95 per cent of GDP comes from the service sector.
- In education, out of the 50 lakh students travelling abroad for higher studies globally, only about 45,000 come to India.
- In the civil aviation sector India spends more than a billion dollars on maintenance, most of which is outsourced to other countries.
- Similarly, in shipping India imports about $500 billion worth of goods every year and only a small fraction of this is on Indian carriers.
- Despite India’s prowess in IT industry there is still scope for much more as the global market is valued at $4 trillion.
- There is tremendous potential in the service sector.
- Services will be the employer of the future. It is the highest contributor to Karnataka’s GDP.
- While the IT sector is poised to grow there is tremendous potential of Karnataka in Healthcare, Tourism, Biotechnology and Education.
SERVICE SECTOR IN KARNATAKA STATE
- Karnataka has the distinction of being one of the fastest growing economies in the country.
- In the past two decades, economic and administrative reforms have transformed Karnataka into a globalized market-based economy, now identified as one of the most attractive investment locations globally.
- Karnataka accounts for a significant share in the total FDI that flows into India. Karnataka has attracted FDI of US$ 24.63 billion (Rs. 137,774 crore) during the period of April 2000 to June 2017.
- Karnataka has also achieved the top spot as the country’s most attractive investment destination as per the DIPP’s SIA Index up to September, 2017 with investment intentions worth Rs 1,47,625 crore accounting to 44.43 per cent of the total investment intentions in the country.
- The major contributors to the Indian FDI are made by US, Japan, UK, UAE and Germany.
- The Advance estimates shows that the Gross State Domestic Product (GSDP) of Karnataka is expected to grow at 9.6% at constant (2011-12) prices and reach Rs.10, 82,534 crore in 2018- 19.
EXPORTS OF KARNATAKA
- Karnataka has a long tradition of overseas trade.
- Historically, Karnataka has been a major exporter of commodities like coffee, spices, silk, cashew nuts, handicrafts and incense sticks.
- In the last two decades, the pattern has shifted to include modern goods which constitute the largest share in the State’s exports. Its share was of the order of 39% in 2017-18.
- The other commodities which have substantial share in Karnataka’s exports in 2017-18 as compared to 2016-17 arepetroleum products (30%), manganese ore (85%), leather products (40%), Marine products (20%) and coffee (12%).
- Export of electronics and software constitute the largest share in the state’s exports.
- The other commodities with significant share in exports are engineering products, readymade garments and Basic Chemicals and Pharmaceuticals.
TOP SECTORS IN KARNATAKA
Top sectors in Karnataka are Aerospace & Defense, Electronics system design and manufacturing (ESDM), Bio Technology & Pharmaceuticals, Auto and Auto Components, Precision tools & Heavy Engineering, Leather & Apparels.
KARNATAKA COMPETE WITH CHINA SCHEME, 2018
- As part of the ‘Compete with China’ scheme, the Karnataka Government has identified nine districts to foster innovation and product diversification.
- It also plans to have manufacturing and assembling activities right from the village level to the taluk and district level in each cluster.
- The existing manufacturing and service base of the district would be adequately utilized and scaled up.
Programmes to be implemented in various districts include
- Kalaburagi for manufacturing of solar power goods,
- Chitradurga for manufacture of LED lights,
- Hassan for manufacture of sanitary goods,
- Koppal for manufacture of mechanized toys,
- Mysuru for an ICB manufacturing unit,
- Bellary for the textile industry,
- Chikkaballapur for mobile phone components,
- Tumkur for sports and fitness goods, and
- Bidar for the manufacture of agricultural implements.
START-UP FRIENDLY INITIATIVES BY GOVERNMENT OF KARNATAKA
- Karnataka startup policy 2015-2020 aims to create a world-class startup ecosystem in the state through strategic investment and policy interventions leveraging the robust innovation climate in Bangalore
- Karnataka ‘Elevate 100’ scheme for start-ups:
- In 2017, GoK has launched the ‘Elevate 100’ scheme to identify and nurture innovative start-ups from various sectors including Manufacturing; Pharma, Agritech, IT, Biotech and Animation.
- The aim is to identify 100 most innovative start-ups in the state to elevate them to the next level of success. Through Elevate, the state Government will help startups with funding, technical and business support based on their need.
EASE OF DOING BUSINESS
- The state has been successful in implementing reforms for simplifying procedures along with providing investor facilitation for the investors to invest in Karnataka.
- In the last 3 years, there has been considerable improvement in business facilitation and easing of business regulatory environment in terms of EODB ranking.