10.4        ndian      onom
              Reforms for ease of doing business that               2016-17, in 2015-16 it registered negative
              resulted in improving India’s ranking by              growth of (–)2.4 per cent. Though, it
              30 position.                                          returned to positive territory with 5.7 per
          The scale of reforms can be gauged from                   cent growth rate in 2016-17.
     the fact that during this period, 25 sectors also              Services exports recorded a robust growth
     including services activities and covering 100                 of 16.2 per cent during April-September
     areas of FDI policy have undergone reforms. FDI                2017-18, with a turnaround in some
     policy provisions were radically overhauled across             major sectors like travel and software
     sectors such as—construction development,                      services. With significant rise in foreign
     broadcasting, retail trading, air transport,                   tourist arrivals, travel receipts, witnessed a
     insurance and pension.                                         robust growth of 27.7 per cent in the first
          At present, more than 90 per cent of FDI                  half 2017-18 as compared to a growth of
     successful implementation of the e-filing and                  7.6 per cent in the corresponding period
     online processing of FDI applications by the                   of the previous year. Notwithstanding the
     Foreign Investment Promotion Board (FIPB),                     pricing pressure on traditional services and
     the Government announced to phase out the                      a challenging global business environment
     FIPB in the Union Budget 2017-18. Recently,                    facing domestic software companies,
     on 10th January 2018, Union Cabinet approved
                                                                    software services exports increased by 2.3
     amendments in FDI policy allowing 100 per
                                                                    per cent, a mild improvement over the
     cent FDI under automatic route for Single Brand
                                                                    previous period.
     Retail Trading. Foreign airlines also have been
     allowed to invest up to 49 per cent in Air India.              Lower growth in services exports than in
                                                                    imports led to a decline in net services
     services trADe                                                 receipts in 2015- 16 and 2016-17. Net
                                                                    services receipts rose by 14.6 per cent
     After a downturn, services trade of India has come
     in the positive territory during 2016-17. The latest           during April-September of 2017-18. Net
     situation (as per the latest Economic Survey 2017-18)          surplus in services financed about 49 per
     of India’s services trade is given below:                      cent of India’s merchandise deficit in
                                                                    2017-18 H1 and cushioned the current
              India remained the 8th largest exporter of
              commercial services in the world in 2016              account deficit.
              (WTO, 2017) with a share of 3.4 per               To boost services exports, the Government
              cent, which is double the share of India’s   in its mid-term Review of Foreign Trade Policy
              merchandise exports in the world at 1.7      2015-2020 increased incentives under Services
              percent.                                     Exports from India Scheme (SEIS) by 2 per cent,
              The ratio of services exports to merchandise leading to an additional annual incentive of Rs.
              exports increased from 35.8 per cent         1,140 crore which could help services exports
              in 2000-01 to 58.2 per cent in 2016-         including Hotel and Restaurant, Hospital,
              17 indicating the growing importance         Educational Services, etc. Although world trade
              of the services sector in India’s exports.   volume of goods and services is projected to
              While, India’s services exports registered   accelerate in 2018, enhanced global uncertainty,
              a compound annual growth rate (CAGR)         protectionism and stricter migration rules would be
              of 8.3 per cent during 2006-07 to            key factors in shaping India’s services exports.