What: 12 Champion Services Sectors launch
Who: President Shri Ram Nath Kovind
- The President of India on May 15, 2018 launched the 12 champion services sectors in Mumbai. During the launch of the scheme the President said that it is a bold new step that will contribute to both India’s economy and the global economy, and will create jobs.
- The Union Cabinet on February 28, 2018 had given its approval to the proposal of the Department of Commerce to give focused attention to 12 identified Champion Services Sectors for promoting their development, and realizing their potential.
- A dedicated fund of Rs. 5000 crores has been proposed to be established to support initiatives for sectoral Action Plans of the Champion Sectors.
- The year 2022 marks 75th anniversary of India’s independence. The Action Plans to be prepared and implemented by the Ministries/Departments concerned shall develop a vision for each of these identified Champion Sectors in the year 2022 and enumerate steps that need to be taken to achieve that vision.
- The share of India’s services sector in global services exports was 3.3% in 2015 compared to 3.1% in 2014. Based on this initiative, a goal of 4.2 % has been envisaged for 2022.
- The share of services in Gross Value Added (GVA) was about 5 3% for India in 2015-16 (61 % including construction services). A goal of achieving a share of services in GVA of 60 % (67% including construction services) has also been envisaged by the year 2022.
Which are Champion Sectors in Services?
- The Group of Secretaries in their recommendations to the Prime Minister, had identified ten Champion Sectors, including seven (7) manufacturing related sectors and three (3) services sectors, for promoting their development and achieving their potential
- It was subsequently decided that Department of Industrial Policy and Promotion (DIPP), the nodal department for ‘Make in India’, would spearhead the initiative for the Champion Sectors in manufacturing and Department of Commerce would coordinate the proposed initiative for the Champion Sectors in Services.
- Accordingly, Department of Commerce, with wide stakeholder consultation coordinated the preparation of draft initial sectoral reform plans for several services sectors and, subsequently the action plan.
- The Champion Sectors in Services (12) are; Information Technology & Information Technology enabled Services (IT & ITeS), Tourism and Hospitality Services, Medical Value Travel, Transport and Logistics Services, Accounting and Finance Services, Audio Visual Services, Legal Services, Communication Services, Construction and Related Engineering Services, Environmental Services, Financial Services and Education Services.
- Impact: This initiative will enhance the competitiveness of India’s service sectors through the implementation of focused and monitored Action Plans, thereby promoting GDP growth, creating more jobs and promoting exports to global markets.
- Employment Generation Potential: Services sector in India has immense employment potential. The proposal will enhance the competitiveness of India’s service sectors through the implementation of focused and monitored Action Plans, thereby creating more jobs in India, contributing to a higher GDP and exports of services to global markets.
- Financial Implications: Certain components of the various sectoral Action Plans that are envisaged to be prepared, related to elements like creation of required infrastructure, fiscal incentives etc., may have financial implications. These details shall be worked out and finalized with due approvals, as part of the action plans prepared by the respective departments. A dedicated fund of Rs. 5000 crores has been proposed to be established to support initiatives for sectoral Action Plans of the Champion Sectors.
- Benefits: As the Services sector contributes significantly to India’s GDP, exports and job creation, increased productivity and competitiveness of the Champion Services Sectors will further boost exports of various services from India. Embedded services are substantial part of ‘Goods’ as well. Thus, competitive services sector will add to the competitiveness of the manufacturing sector as well.