Draft Report of the High Level Group on Services Sector

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