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Domestic Preparedness of India in Trade in Services

Archana Jatkar

CUTS International, Jaipur

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Outline

Introduction India and Liberalisation under GATS Major service sector interest of India and its position under GATS

1. Telecommunication Services

2. Education Services

3. Health Services

4. Legal Services

5. Accountancy Services Way Forward

1. Suggestions from stakeholders

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Introduction

Global trade in Services estimated at around US$2trillion GDP Contribution- nearly 55 per cent of the GDP in 2006-07 Integration of India’s service sector into global economy India’s Export amounted to US$60 billion in 2005-2006 India’s share in the global trade of services has increased from 2 per

cent in 2004 to 2.7 percent in 2006 Categories of Service Sector

1. Substantially liberalised such as Telecommunication

2. Moderately liberalised such as Education and Health Services

3. Less than moderately liberalised such as Legal and Accountancy services

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Liberalisation under GATS and India

Scope of GATS Modes of Supply Commitment process under GATS Review of India’s position

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Major Service Sector and India’s position under GATS

Telecommunication Services

Structure of telecommunication services in India

1.Fixed Services

2.Mobile Services

3.Value Added Services Regulation of Telecom Sector

1. Telecom Regulatory Authority of India (TRAI)

2. Telecom Dispute Settlement and Appellate Tribunal (TDSAT)

India’s negotiating position at WTO

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Continued…

Education Services

Introduction of education services Third Largest after the US and China Types of Institutions Structure of education services in India Regulation of education services

1. University Grants Commission (UGC) National Assessment and Accreditation Council (NAAC)

2. For Technical and Management education, All India Council for Technical Education (AICTE) and National Board of Accreditation (NAB)

India’s negotiating position at WTO

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Continued…

Health Services

Introduction of health services Regulation of health services

1. Medical Council of India Act, 1956

2. Nursing Council of India

3. Pharmacy Council of India Act, 1948 India’s negotiating position at WTO

1. Medical and Dental services

2. Hospital services

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Continued…

Legal Services

Introduction of legal services Regulation of legal services Cross border trade and the temporary movement of natural persons are

important modes of supply of legal services under GATS No commitments in the sector during the Uruguay Round of

negotiations

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Continued…

Accountancy Services

Introduction of accountancy services Domestic regulation in accountancy services

1. An accountant is prohibited from soliciting customers, paying commission, brokerage or share of profits to anybody other than another accountant

2. Accountants in India are not allowed to advertise their products and services

3. The number of partners a firm in India can employ under the current scenario is restricted to 20 and the number of clients a firm can service is limited to 30 statutory audits per partner

India’s negotiating position at WTO

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Way forward

Need to look at domestic preparedness

1. Domestic rules and regulations

2. Capacity building Export enhancement Gains from trade liberalisation Suggestions from stakeholders

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THANK YOU