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.
• These include
  1. Information Technology & Information Technology enabled Services (IT& ITeS),
  2. Tourism and Hospitality Services,
  3. Medical Value Travel,
  4. Transport and Logistics Services,
  5. Accounting and Finance Services,
  6. Audio Visual Services,
  7. Legal Services,
  8. Communication Services,
  9. Construction and Related Engineering Services,
  10. Environmental Services,
  11. Financial Services and
  12. Education Services.

• A dedicated fund of Rs. 5000 crores has been proposed to be established to support initiatives for sectoral Action Plans of the Champion Sectors.

Background

• 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.
• 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, 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.

Rationale and Objective

• The idea was launched and accepted on 28 February 2018.
• 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.

Targets

• 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.

Champion Services Sector Scheme

• It is a Central Sector Scheme of the Department of Commerce.
• The main objectives of the Champion Services Sector Scheme are as follows:
  1. Sectoral and cross-cutting issues including domestic regulatory reforms, skill development, data protection regime etc.
  2. New initiatives to prevent India’s service sector from losing its competitive position in the global market.
  3. Increased productivity and competitiveness of the Champion Service Sectors will enhance services gross value added contributed by domestic services sectors.
  4. It will boost India’s service sector’s exports.
  5. Skill training and Employment creation.
• Under the Champion Services Sector Scheme (CSSS) a total amount of Rs.3369.75 Cr for 3-5 years (2019-20 to 2023-24) has been approved by the Expenditure Finance Committee based on the proposals submitted by the concerned Ministry/Department, details of which are at Annexure.
• As per the guidelines of the Scheme, there is a three-tier monitoring mechanism, namely
  6. the concerned Ministry/Department,
  7. the Department of Commerce and
  8. the Committee of Secretaries chaired by the Cabinet Secretary

Following is the structure of the Umbrella scheme: