Policy Measures for the Development of the Services Sector
In post 1991 period, there were numerous measures taken on by the government to build up services sector, particularly through deregulation of some sub sectors of services sector. FDI varying between 26% (in print media) to 100 per cent in IT sector, BPOs, infrastructure, e - commerce activities, etc) has been permitted.
There are a number of other promotional procedures taken by the government to prolong the enlargement of the services sector. For instance, having comprehended that in knowledge - intensive world driven by Information Technology , amalgamation with global economy can’t take place without making quality telecom services reachable at affordable prices , a large number of steps like initiation of National Telecom Policy 1994, National Telecom Policy-2012, New Telecom Policy 1999, Broad Band Policy 2004 etc were undertaken. Additionally, a number of promotional actions have been taken up in Information Technology Enabled Services and Information Technology segment, tourism, trade, banking & insurance & real estate sectors.
According to Global Services Location Index 2007, India has come into view as a top destination for off shoring. There is a lot of scope for future expansion as only 10 per cent of the potentially addressable global Information Technology Enabled Services and Information Technology market has been realized. The remaining 90 per cent remains to be tapped.