Draft Report of the High Level Group on Services Sector



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Report of the High Level Group on Services Sector





Government of India

Planning Commission

New Delhi

March 2008

Contents
Page No.
Preface.................................................................................................................................4

PART – A
Executive Summary..........................................................................................................5
Chapter 1: Services Competitiveness Report 30

    1. Overview of India’s Services Economy.......................................................................30

    2. Enhancing Competitiveness of India’s Services sector..............................................38


Chapter 2: IT and IT enabled services 51

2.1 Profile of India’s IT-ITES Exports...............................................................................51

2.2 Strategies of Indian IT-ITES companies......................................................................53

2.3 Emerging challenges facing Indian IT and IT Enabled Services................................54


2.4 Responding to Challenges...........................................................................................63
Chapter 3: Tourism 68

3.1 Tourist Accommodation.............................................................................................71

3.2 Air Transport.............................................................................................................73

3.3 Road Transport.........................................................................................................74


3.4 Maintenance of Heritage Sites..................................................................................75

3.5 Integrated Infrastructure Development of Tourist Sites...........................................77

3.6 Beach Tourism..........................................................................................................77

3.7 Conference Tourism.................................................................................................78

3.8 Entertainment for tourists........................................................................................78


3.9 Tourist Clusters........................................................................................................79

3.10 Human Resource Development..............................................................................79

Chapter 4: Shipping 82

4.1 Taxation Issue..........................................................................................................85

4.2 Cargo support issue.................................................................................................93


4.3 The Cabotage Issue..................................................................................................95

Chapter 5: Overview of Healthcare Services in India 96


5.1Overview of Healthcare Services in India...................................................................96

5.1.1 Public Health System...............................................................................................96

5.1.2 Initiatives on Public Health Infrastructure in the XI Plan......................................97

5.1.3 Healthcare in the Private Sector............................................................................98

5.1.4 Medical Value Trade in India..................................................................................99

5.1.5 Indian Medical Professionals in Foreign Countries..............................................101

5.1.6 Telemedicine in India.............................................................................................102

5.1.7 Health Insurance....................................................................................................104

5.1.8 Clinical Trials and Research................................................................................105

5.2 Challenges before the Healthcare Sector in India....................................................107

5.3 Responding to Challenges........................................................................................114



Chapter 6: Financial Services 119

6.1 Introduction.............................................................................................................119

6.2 Key reform measures................................................................................................120

6.3 The next level of change: A new approach to the financial sector..........................136

6.4 Development of human capital and skills...............................................................138




Chapter 7: Retail Trading Services 139



7.1 Profile of the Indian Retail Sector..........................................................................139

7.2 Issues in Retailing...................................................................................................141




PART – B

Tables

Table 1a: Share of Different Sub-sectors within Services.................................................31

Table 1b: Growth Rate within the Services Sector............................................................32

Table 1c: Employment Statistics (disaggregated) ............................................................33

Table 1d: Knowledge Professionals Employed in the Indian IT-BPO Sector.................34

Table 1e: Exports of Commercial Services.....................................................................36

Table2a: Segment wise export value trends in IT-ITES-BPO industry..................................51

Table 2b: Destination of India’s IT-ITES exports (percentage).............................................52

Table 2c: List of Projects in the National e-Governance Plan...............................................62

Table 3a: Foreign Tourist Arrivals and Estimated Foreign Exchange Earnings.....................69

Table 3b: International Tourist Arrivals in Asia & Pacific Region........................................70

Table 3c: Inbound and Outbound Tourists in India: in Millions...................................70

Table 5a:  Costs of selected procedures in selected countries................................................100

Table 5b: 20 major nations providing physicians to the US, UK, Canada and Australia......101

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