BackGovt readying reforms in services sectors
Panel of secretaries formed to work out details is working on reforms in education, legal and healthcare
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New Delhi: In order to improve its competitiveness in various services sectors, the government is planning to introduce major reforms, both through executive and legislative means, and has formed a committee of secretaries (CoS) to finalize the details. To begin with, the CoS is working on reforms in the area of legal, education and healthcare services.
India, despite signing a raft of services trade agreements with countries such as South Korea, Japan, Malaysia and Sri Lanka, has not benefited due to a lack of domestic standards and synergy among different government agencies.
“A few years ago, there was an inter-ministerial committee for identifying and working on reforms that are required in various services areas in terms of legislation, practice procedures, etc. That process has reached a point now where we are rolling out consultation at the inter-ministerial level in the form of a committee of secretaries after which we will take it to the logical conclusion through cabinet decisions," commerce secretary Rajeev Kher said on Tuesday.
While services contribute 57% of gross domestic product of a nearly $2 trillion economy, India’s net services exports amounted to a meagre $73 billion in 2013-14 in which software alone accounted for $69 billion. India has a share of 3.4% of the global services trade while China has a share of 4.6%.
Keeping in mind the huge potential in services exports, the commerce ministry is organizing a global exhibition of services from 23-25 April to showcase India’s services offerings. More than 40 countries are expected to participate in the fair which will be inaugurated by Prime Minister Narendra Modi. From next year onwards, a services conclave will be held alongside the services exhibition in February.
“Global Exhibition on Services (GES) shall create a global platform for increased trade in services. GES will enhance strategic cooperation and develop synergies to strengthen multilateral relationships between all stakeholders, tap the potential for services’ exports and to increase FDI (foreign direct investment) flow in the services sector," a statement by the commerce ministry said. The focus sectors of the GES are information technology (IT) and telecom, tourism, media and entertainment, healthcare, logistics, professional services, education, research and development, space, and small and medium enterprises.
Kher said the CoS is currently working on the improvements that are required on India’s global competitiveness in about 10-12 service areas. “For now we are working on legal, education and healthcare services," he added.
Commerce and industry minister Nirmala Sitharaman said India has a huge potential in many services sectors other than software. These include tourism, the wellness industry, yoga and hospitality. “Unless service sector goes hand in hand with the manufacturing sector, benefits from both sectors cannot be maximized," she added.
Sitharaman met US secretary of commerce Penny Pritzker for the bilateral commercial dialogue on Tuesday. After the meeting, Sitharaman said senior officials of India and the US will meet after the forthcoming budget session of Parliament to identify and prioritize sectors for investments and technology sharing. “We will have a group of officials from both the sides. They will sit and identify sectors where priority investments can come in and where technology can come in," Sitharaman told reporters.
During the 40-minute meeting, issues related to a planned totalization agreement that would eliminate dual social security taxation, intellectual property rights (IPRs) and visas were discussed. The minister invited comments from the US on India’s draft IPR policy, which has been put in public domain.
“We have asked for possibilities where technology could be shared too and also to bring in investments to help small and medium enterprises of India," she said. Sitharaman said great progress has been made in India-US relations on account of US President Barack Obama’s visit to India that ended on Tuesday.
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