Exports from this sector have grown by about 22 per cent to USD 62 billion during the April-January period of 2017-18.
Commerce Secretary Rita Teaotia said the exports to developed countries are growing at a rapid pace.
Shipments to North America and Europe account for about 40 per cent of the total exports from the sector, she said.
"We are confident that, the exports will see a new high this financial year," she said at the inauguration of India Engineering Sourcing Show here.
Also Read
Teaotia said that government initiatives such as 'Make in India', 'Start Up India' and 'Digital India' would further boost the growth of industries in the country.
Emphasising on the importance of the growing services sector, she made a case for recalibrating the traditional model of manufacturing led development.
Teaotia said the services sector matters greatly for enhancing competitiveness of the manufacturing sector and also accounts for a significant portion of the value added in a product.
Global mega trends such as Industry 4.0, changing dynamics of the global value chain, rise of shared economy are presenting both opportunities and challenges to the country, she added.
Teaotia said that long term enablers that focus on job creation by harnessing these mega trends and business models at the intersection of services in manufacturing will be key to future development.
Speaking at the event, EEPC India Chairman Ravi Sehgal said that the exports may reach USD 100 billion in the coming years.
The bilateral trade between the countries stood at over USD 1 billion.
Disclaimer: No Business Standard Journalist was involved in creation of this content