RBI for bringing services sector under tax net

The report has pointed out that a large part of the services output continues to be non-tradeable in nature and this along with a shift in employment would point to the need for policy initiatives towards introducing greater competition and efficiency in the services sector for ensuring its sustained contribution to high long-term growth.

quot;While the rising share of the services sector in GDP is an encouraging sign of greater degree of diversification of the Indian economy, a corresponding decline in the share of industry and agriculture implies that the overall productivity gains in the economy will depend increasingly on what happens in the services sector,quot; the report said.