| Popis: |
Services dominate the Gross Domestic Products of a majority of nations. This paper analyses what constitutes services and the reason for its increased importance due to globalization. It then shows how the tradability of services has increased significantly over the last decade and how this has opened up tremendous opportunities across the globe. It then looks at the Indian scenario and provides a roadmap on what the government needs to do in order to use the opportunities in the service sector to achieve the development objectives from the growth process. The paper concludes that to ensure that India can exploit international opportunities in the services industry, the government needs to invest in education and negotiate for increased movement of natural persons. To ensure growth in the domestic services sector, the paper concludes that balanced growth is necessary across all sectors. To achieve this, the government has to remove land, product and labour market distortions and reduce barriers to FDI flows. |
