IT and IT-enabled
Services (ITeS) make up the single largest contributor to India’s
Services exports. The Economic Survey 2014-15 says the IT and ITeS sector
including Business Process Management (BPM), continues to be one of the largest
employers in the country, directly employing nearly 35 lakh people. NASSCOM
estimates the revenue of the IT-BPM industry at US$119 billion grew by 12
per cent in 2014-15 with export market alone making up almost $100 billion.
The year witnessed hyper-growth in the technology start-up and software product
landscape, India ranking as the fourth largest start-up hub in the world
with over 3,100 start-ups in the country. Software products and services
revenues for 2015-16 is projected to grow at 12-14 per cent.
Recognizing the
need for greater penetration of IT Services domestically, the Survey notes
that the Government’s “Make in India” mission
has included IT and BPM among the 25 focus sectors.
Talking of the
Tourism Sector, the Economy Survey says the easing of the Indian tourism
visa regime through the expansion of Tourist Visa on Arrival enabled by Electronic
Travel Authorization (ETA) will give a fillip to foreign tourist arrivals
in the country. The Survey notes that there was an increase in growth on
both foreign tourist arrivals at 7.1 per cent and foreign exchange earnings
at 6.6 per cent in the year 2014. However, India’s share of world tourism
is a paltry 0.6 per cent of International Tourist Arrivals compared to 7.8
per cent in France and 6.4 per cent in the US.
Referring to Transport
related Services, the Economic Survey points out there is an urgent need
to improve India’s ageing shipping fleet. Despite having
one of the largest merchant shipping fleets among developing countries, India’s
share in total world Dead Weight Tonnage is only 1.1 per cent. While taking
note of improved cargo traffic at Indian ports, the survey hints at a major
capacity facelift with an investment target of around Rs. 3 Lakh crores by
the year 2020, with FDI permissible upto 100 per cent under automatic route
for construction and maintenance of ports.
Reviewing the
Real Estate and Housing Sector, the Survey says the growth rate slowed down
from 7.6 per cent in 2012-13 to 6 per cent in 2013-14 while FDI fell to US$
703 million in the current fiscal (April – November, 2014).
The widening gap between demand and supply of housing units and affordable
housing finance solutions is a major policy concern. At present urban housing
shortage is 18.8 million units of which over 95 percent is in EWS/LIG segments
and required huge financial investment to overcome.
Talking of the
over Rs. 11 lakh crores worth of Trade and Repair Services Sector comprising
11 percent of GDP, the Survey says that migration from traditional stores
to modern retail continues, though the latter still accounts for only 8 percent
of the total market. Pointing out that India’s e-commerce market
is expected to grow by more than 50 percent in the next five years, the Survey
says the government proposes to include sufficient provisions for consumer
safeguards in the ongoing amendments to the Consumer Protection Act, 1986.
The Survey also takes note of the vibrant Indian media and entertainment industry
comprising TV, Print, Films, Radio, Movie, Animation, Gaming etc and says that
with 100 percent FDI permitted in the Film Sector, India is emerging as the
new favourite of international studios.
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