Lok Sabha Question No. 4101 (UNSTARRED), answered on 2017-03-27
Subject: Promotion of Service Sector
Ministry: COMMERCE AND INDUSTRY
Asked by: KINJARAPU RAM MOHAN NAIDU

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

## LOK SABHA UNSTARRED QUESTION NO. 4101 TO BE ANSWERED ON 27 th  MARCH, 2017

## PROMOTION OF SERVICE SECTOR

## 4101. SHRI RAM MOHAN NAIDU KINJARAPU:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) whether the share of Service Sector to GDP is far greater than manufacturing even though the contribution of the Government to Service Sector is almost nominal;
- (b) if so, the details thereof along with the role the Government has identified for itself to give a further boost to the Service Sector in future;
- (c) whether the Government has any concrete plan to bring convergence between the Service Sector and the industry; and
- (d) if so, the details thereof?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

(a)  &  (b): As  per  Central  Statistics  Office  (CSO)  provisional  data,  the  share  of  services  sector  to  Gross  Value Added (GVA) is 53.7 per cent in 2016-17 (as per second advance estimates) whereas the share of manufacturing is 16.6 percent.

In  order  to  promote  trade  in  services,  Government  of  India  follows  a  multi-pronged  strategy  of  negotiating meaningful market access through multilateral, plurilateral and bilateral trade agreements, trade promotion through participation in international fairs/exhibitions, focussed strategies for specific markets and sectors. Further, there are  domestic  sectoral  challenges  and  difficulties.  These  are  identified  and  sought  to  be  addressed  through consultations  with  stakeholders.  Government  of  India  also  provides  some  fiscal  incentives  through  Services Exports from India Scheme (SEIS) for some identified sectors as per budget availability.

(c) & (d): Services are embedded in manufacturing as well some important services which are also inputs into the manufacturing sector are: IT/TeS, logistic services which comprises courier services, retail including e-commerce and  transport  services,  financial  services  (insurance  and  banking),  utilities  such  as  telecommunications  and professional  services  (engineering  services,  architectural  services,  accounting  and  legal  services).  Therefore, these  key  service  sectors  are  critical  for  the  success  of  the  'Make  in  India'  Programme.  The  'Make  in  India' programme has identified twenty-five thrust areas from both manufacturing and services sectors to provide major push to both these sectors. Apart from this, the policy initiatives like Start-up India, Stand-up India, Digital India and  Skill  India,  fillip  to  manufacturing  and  infrastructure  through  fiscal  incentives  and  concrete  measures  for transport, power, connectivity, smart cities and other urban and rural infrastructure and efforts at improving the ease of doing  business through  a  number  of  facilitatory  initiatives  are  also  likely  to  boost  services  sector.  The substantive changes in the policy regime for foreign direct investment are expected to boost both industrial and service sector growth.

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