Source: PIB & Arthapedia
What are Champion Services Sectors?
Champion Services Sectors refers to the 12 identified sectors where the Government wants to give focused attention to promoting their development and realizing their potential.
12 identified sectors are:
- Technology & Information Technology enabled Services (IT& ITeS)
- Tourism and Hospitality Services
- Medical Value Travel
- Transport, and Logistics Services
- Accounting and Finance Services
- Audio Visual Services
- Legal Services
- Communication Services
- Construction, and Related Engineering Services
- Environmental Services
- Financial Services, and
- Education Services.
- The Group of Secretaries in their recommendations to the Prime Minister had identified ten Champion Sectors, including seven (7) manufacturing-related sectors and three (3) services sectors, for promoting their development and achieving their potential.
- The Union Cabinet had approved the proposal of the Department of Commerce to give focused attention to 12 identified Champion Services Sectors for promoting their development and realizing their potential
- It was subsequently decided that the Department of Industrial Policy and Promotion (DIPP), the nodal department for ‘Make in India’, would spearhead the initiative for the Champion Sectors in manufacturing and Department of Commerce would coordinate the proposed initiative for the Champion Sectors in Services.
- Accordingly, the Department of Commerce, with wide stakeholder consultation coordinated the preparation of draft initial sectoral reform plans for several services sectors and, subsequently the action plan.
- A dedicated fund of Rs. 5000 crores were proposed to be established to support initiatives for sectoral Action Plans of the Champion Sectors.
Rationale and Objective
This initiative is expected to enhance the competitiveness of India’s service sectors thereby creating more jobs in India, contributing to a higher GDP and export of services to global markets.
- The share of India’s services sector in global services exports was 3.3% in 2015. Based on this initiative, a goal of 4.2% has been envisaged for 2022.
- The share of services in Gross Value Added (GVA) was about 53% for India in 2015-16 (61% including construction services).
- This initiative is expected to raise the share of services in GVA to 60% (67% including construction services) by the year 2022.