Indian Chamber wants services reforms

Indian Chamber of Commerce (ICC) yesterday released a research paper "Services Sector : Propelling Sustainable Double-Digit GDP Growth."

The research paper was part ICC's strategy to conduct studies with the purpose of scripting a fresh set of economic policy recommendations in sectors like industry, services, agriculture, exports and foreign direct investment, to be submitted once the new government took charge.

One of the highlights of the study included a call for a "One India Trade Framework", with no entry barriers like octroi, entry tax, modeled on the European Union.

According to the study, the services sector was the engine of future economic growth in India and would have to grow at 12 per cent and 15 per cent, in order to achieve sustainable overall double-digit growth.

Some of the key policy recommendations included target growth rate for trade at 12 per cent as compared to the present nine per cent.

The target growth rate for hotels and tourism was pegged at 20 per cent against current rate of 11 per cent, backed by a call for a strong open skies policy with fiscal incentives for developing tourist resorts and greater marketing for international tourists.

The study also recommended promotion of educational and medical tourism, which offered top quality education and medical facilities at low costs.

Further, it also emphasised on the need for quality education for fulfilling requirements of future needs of IT and ITES industry along with creation of centres of excellence in education and training in each state.