10.10 ndian onom
the use of individual logos for partnership and policy reforms10 in this regards are outlined in the
single proprietorship accounting firms. These following way:
regulations need to be relaxed and streamlined
to facilitate tie-ups and penetrate foreign markets generAl issues
given the potential for exporting these services by There are some general issues related to the policy
the outsourcing mode. framework which hamper the healthy growth and
expansion of the services sector in the country.
legAl services They are broadly related to the following areas:
In this sector, FDI is not permitted and international Nodal agency and marketing: Despite having strong
law firms are not authorised to advertise and open growth potential in various services sub-sectors,
offices in India. Foreign service providers can there is no single nodal department or agency
neither be appointed as partners nor sign legal for services. An inter-ministerial committee for
documents and represent clients. The Bar Council services has been set up to look into this. But
is opposed to entry of foreign lawyers/law firms in services activities cover issues beyond trade and a
any manner. Indian advocates are not permitted more proactive approach and proper institutional
to enter into profit-sharing arrangements with mechanism is needed to weed out unwanted
persons other than Indian advocates. regulations and tap the opportunities in the services
sector in a coordinated way. There is also need for
eDucAtion services promotional activities for service exports like,
These come under the Concurrent List with (i) setting up a portal for services,
multiple controls and regulations by central (ii) showcasing India’s competence also in
and state governments and statutory bodies. non-software services in trade exhibitions,
Regulations of minimum of 25 acres of land to (iii) engaging dedicated brand ambassadors
establish a medical college restricts the setting up and experts.
of medical colleges in cities like Delhi. Patient Disinvestment: There is plenty of scope for
load factor regulations related to establishment disinvestment in services PSUs under both central
of new medical colleges also need to be in tune and state governments. Speeding up disinvestment
with present day equipment-intensive patient care in some services-sector PSUs could not only
and modern practices and procedures of medical provide revenue for the government but also speed
education. up the growth of these services.
Credit related: The issues here include ‘collateral
the need for reformS free’ soft loans to support the sector’s cash needs
Indian services sector have the potential to garner and possibility of considering even export or
higher economic benefits to the country. But 10. H.A.C. Prasad, R. Sathish, and Salam Shyamsunder
there are many issues both general and sector Singh (2014), working paper 1/2014-DEA on
specific including domestic regulations hinder the ‘Emerging Global Economic Situation: Opportunities
growth prospects of the services sector. If these and Policy Issues for Services Sector’ and updates from
some ministries and institutions, as quoted in, Ministry
issues are addressed deftly the sector could lead to of Finance, Economic Survey 2013–14 (New Delhi:
exponential gains for the economy. The need of Government of India, 2017), p. 190.