Union Cabinet approves Action Plan for Champion Sectors in Services

Union Cabinet has approved the proposal of Ministry of Commerce and Industry to give focused attention to 12 identified Champion Services Sectors (CSS) for promoting their development and realizing their potential.

12 identified CSS are

Information Technology & Information Technology enabled Services (IT & ITeS), Medical Value Travel, Transport and Logistics Services, Tourism and Hospitality Services, Accounting and Finance Services, Audio Visual Services, Communication Services, Legal Services, Construction and Related Engineering Services, Environmental Services, Financial Services and Education Services.

Key Facts

Cabinet also has directed Ministries/Departments concerned with these sectors to utilize available draft sectoral plans to finalize and implement Action Plans for identified CSS. The respective Ministries/Departments will finalize Action Plans and implementation timelines along with monitoring mechanism to monitor implementation under overall guidance of Committee of Secretaries (CoS) under Cabinet Secretary. Government will set up dedicated fund of Rs. 5000 crores to support initiatives for sectoral Action Plans of the Champion Sectors.  These Action Plans will develop vision for each of these identified Champion Sectors by year 2022 and enumerate steps that need to be taken to achieve that vision.

Significance

It will enhance competitiveness of country’s service sectors through implementation of focused and monitored Action Plans. It will promote GDP growth, create more jobs and promote exports to global markets. Competitive services sector will also add to competitiveness of manufacturing sector as well.

Background

The share of India’s services sector in global services exports was 3.3% in 2015 compared to 3.1% in 2014. Based on this initiative, a goal of 4.2 % has been envisaged for 2022. Its share in Gross Value Added (GVA) was about 53% in 2015-16 (61 % including construction services).
The Group of Secretaries in their recommendations to Prime Minister, had identified 10 Champion Sectors, including three (3) services sectors related sectors and seven (7) manufacturing, for promoting their development and achieving their potential. It was subsequently decided that Department of Industrial Policy and Promotion (DIPP), the nodal department for ‘Make in India’ will spearhead initiative for Champion Sectors in manufacturing and Department of Commerce (DoC) will coordinate proposed initiative for Champion Sectors in Services.

Month: Current Affairs - March, 2018