ervi es e tor       10.3
              share of 30.6 per cent being the lowest.            fDi in services sector
              While China had the highest increase in
                                                                  Though there is ambiguity in the classification
              the share of services employment (10.2
                                                                  of FDI in services, it is the combined FDI share
              pp) during the period 2006 to 2016,
                                                                  of the top 10 service sectors such as financial
              increase in India was 5.2 pp.
                                                                  and non-financial services falling under the
              Services export growth, both for World
                                                                  Department of Industrial Policy and Promotion
              and India, which had dipped to negative
                                                                  (DIPP)’s services sector definition; as well as
              territory in 2015 after an interregnum of
                                                                  telecommunications; trading; computer hardware
              six years from 2009, returned to positive
              territory in 2016.                                  and software; construction; hotels and tourism;
                                                                  hospital and diagnostic centres; consultancy
              As per the latest WTO data for 2017 (first
                                                                  services; sea transport; and information and
              half) world’s services export growth was
                                                                  broadcasting that can be taken as the best estimate
              4.3 per cent while it was 9.9 per cent for
                                                                  of services FDI. However, these could include
              India (0.2 per cent for China and the
              highest 18.4 per cent for Russia).                  some non-service elements. The share of these
                                                                  services is 56.6 per cent of the cumulative FDI
     services PerformAnce of inDiA                                inflows during the period April 2000-October
                                                                  2017 and 65.8 per cent of FDI equity inflows
     As per the CSO (1st Advance Estimates of national
                                                                  during 2017-18 (upto October). If the shares of
     income for 2017-18), services sector growth (GVA
                                                                  another five services or service-related sectors like
     at constant prices) is estimated to be 8.3 per cent
     (against 7.7 per cent of the preceding year). Major          retail trading, agriculture services, education, book
     feature of India’s services performance5 are as              printing and air transport are included, then the
     given below:                                                 total share of FDI equity inflows to the services
                                                                  sector would increase to 58.5 per cent and 69.6
              Out of the 32 States and UTs, it is the
              dominant sector, contributing over 50               per cent respectively for the above two periods. In
              per cent of the gross state value added             2016-17, FDI equity inflows to the services sector
              (GSVA) in 15 states and UTs. The                    (top 10 sectors including construction) declined
              major services in most of the states are            by 0.9 per cent to US$ 26.4 billion, though the
              trade, hotels and restaurants, followed by          overall FDI equity inflows grew by 8.7 per cent.
              real estate, ownership of dwellings and             However, during 2017-18 (April-October), the
              business services.                                  FDI equity inflows to these services sector grew by
              The GVSAs show wide variation in terms              15.0 per cent, as compared to 0.8 per cent growth
              of share and growth of services—Delhi               in total FDI equity inflows, mainly due to higher
              and Chandigarh are at the top with over             FDI in two sectors i.e., Telecommunications and
              80 per cent share, while Sikkim is at the           Computer Software and Hardware.
              bottom with 31.7 per cent share.                         In the last three years (2014-2017), the
              In terms of services GSVA growth, Bihar             Government has undertaken a number of reforms
              is at the top and Uttar Pradesh at the              to ensure that India remains an increasingly
              bottom with 14.5 per cent and 7.0 per               attractive investment destination, which include—
              cent growth respectively in 2016-17.                          Announcement of National Intellectual
                                                                            Property Rights (IPR) policy,
        5.  Economic Survey 2017-18, Vol. 2, Ministry of Finance,
            GoI, N. Delhi, pp. 153-157.                                     Implementation of GST,