Championing services: The enabling environment cannot remain constrictive

The first and obvious issue concerns the foundations on which to build a strong services sector

The Union Cabinet’s approval last week for a Rs 50 billion fund to promote 12 “Champion Services” reflects a recognition of the critical role of the sector, which now accounts for over half of India’s gross domestic product. The services singled out for this status include the usual suspects – IT and IT-enabled services, hospitality, medical tourism, legal services, financial services, accountancy and so on. It is unclear yet how the fund will be structured to achieve the stated goal of promoting the development of these industries to “help them realise their potential”. The intention behind this decision is undoubtedly