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