Lok Sabha Question No. 2188 (UNSTARRED), answered on 2018-01-01
Subject: Promotion of Service Sector
Ministry: COMMERCE AND INDUSTRY
Asked by: RAM KUMAR SHARMA KUSHWAHA

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2188 TO BE ANSWERED ON 01 st  JANUARY,2018

## PROMOTION OF SERVICE SECTOR

## 2188(H). SHRI RAM KUMAR SHARMA:

Will the Minister of COMMERCE & INDUSTRY ( वा ͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) whether the service sector has developed as an industry across the world including India;
- (b) if so, the reaction of the Government thereto;
- (c) whether various countries across the world have taken actions for creating hurdles in their respective countries in the way of expansion of the said sector;
- (d) if so, the details thereof along with the reaction of the Government thereto; and
- (e) the  measures taken  by  the  Government in  removing  these  hurdles  along  with  the success achieved in this regard?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jh lh- vkj- pkS/kjh½

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI C. R. CHAUDHARY)

- (a) & (b) Services  are  the  growing  frontier  of  global  trade.  In  terms  of  contribution towards GDP, FDI, exports and employment generation, services are becoming a dominant driver of economic growth, both in developed and developing countries. The following table illustrates the importance of services sector:

| Growing share of Services in the World Economy        | Growing share of Services in the World Economy   | Growing share of Services in the World Economy   |
|-------------------------------------------------------|--------------------------------------------------|--------------------------------------------------|
| 2014                                                  | India                                            | World                                            |
| Share of Services in GDP                              | 52.1%                                            | 70.5%                                            |
| Trade in Services as a share of GDP in 2009 and 2014* | 12.7% and 14.8%                                  | 11.8% and 13.2%                                  |
| Higher buoyancy in growth of services exports         | Service (5%), Goods (2%)                         | Service (4%), Goods (1%)                         |
| Share in Employment                                   | 28.7%                                            | 50.9%                                            |
| Source - World Bank and *WTO database                 | Source - World Bank and *WTO database            | Source - World Bank and *WTO database            |

(c) to (e) It may be mentioned that Software Services is a dominant service export from India.  The  Economic  Survey,  2016-17  has  stated  that  misconstruing  mobility  of  skilled people as an immigration issue is a deterrent of growth of IT-BPM Global business resulting in many barriers to free movement of skill of data in the major markets. Countries like USA, UK,  EU  and  Australia  have  introduced  various  changes  that  are  obstacles  for  Indian companies to export services from India. India  has taken  up these issues with respective countries under aegis of various institutional mechanisms.

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