NITI Aayog report flags regulatory reforms to unlock India’s professional services potential

NITI Aayog has released a report examining India’s regulatory framework for professional services, with a focus on strengthening the sector’s competitiveness, boosting services exports, and unlocking opportunities for high-skilled employment and entrepreneurship. 

Ashok Kumar Lahiri, Vice Chairman, NITI Aayog, launched the third report under the Services Thematic Series at a forum of the High-Powered ‘Education to Employment and Enterprise’ Standing Committee on August 10. NITI Aayog CEO Nidhi Chhibber and Dr Saurabh Garg, Secretary, Ministry of Statistics and Programme Implementation (MoSPI), were also present at the launch. 

Senior officials from central and state governments, industry associations, and experts from academia attended the event as members of the High-Powered Committee. 

What does the report examine? 

Titled “India’s Services Sector: Insights on Regulatory Regime in Professional Services”, the report provides a factual assessment of India’s regulatory framework governing professional services and benchmarks it against selected foreign jurisdictions. 

Based on extensive consultations with stakeholders, the report identifies key regulatory challenges and outlines measures to strengthen the sector and unlock the potential of India’s professional workforce. 

Why are professional services important for India? 

Professional services are a critical component of India’s services economy, accounting for nearly a quarter of the country’s total services exports. As high-value and knowledge-intensive activities, professional services support the efficient delivery of downstream services, generate employment and contribute to remittance inflows. They also play a central role in the broader services value chain. 

The report also highlights the importance of understanding and improving the regulatory ecosystem governing the sector to enable further growth. 

What does NITI Aayog propose? 

The report outlines a four-pronged strategy to improve the efficiency and output of India’s professional services sector. 

The strategy includes harnessing emerging trends to transform professional services, elevating the role of professional services within the broader services value chain, adopting global best practices and promoting continuous professional development. 

As India approaches its demographic peak, the professional services sector could provide significant opportunities for high-skilled employment, entrepreneurship and innovation. 

According to the report, a well-designed regulatory framework could also help expand services exports, facilitate the cross-border mobility of professionals and improve the ease of doing business. The report also provides an indicative pathway for future policy discussions and further examination of the regulatory foundations of professional services.