NITI Aayog Proposes Regulatory Reforms to Boost Professional Services Exports
India could unlock the full export capacity of its professional services sector through targeted regulatory changes, according to a recent report released by NITI Aayog. The study underscores that enhancing clarity, professional mobility, and qualification recognition is vital to strengthening the country’s footprint in international services trade.
What Happened
Government think tank NITI Aayog published a report titled India’s Services Sector: Insights on Regulatory Regime in Professional Services. The assessment outlines the regulatory conditions shaping trade and market entry across key professions. It notes that while professions such as law, medicine, accounting, and auditing operate under established frameworks, fields like engineering, landscape architecture, and urban planning currently face light regulation or lack formal oversight altogether. Excessively restrictive domestic rules, such as nationality conditions, licensing barriers, and establishment limits, were found to impede both domestic and foreign service providers.
Key Highlights
- Global Standing: India ranked as the seventh-largest services exporter globally in 2024, holding a 4.3 per cent share of the global total.
- Export Share and Growth: Professional and management consulting services made up nearly 20 per cent of total services exports in 2024-25. Professional services registered a compound annual growth rate of 18 per cent between FY15 and FY25 after representing 19.7 per cent of services exports in 2023.
- Four-Pronged Strategy: The report recommends focusing on continuous professional development, moving professional services up the value chain, adopting global best practices, and advancing emerging trends.
- Legal Sector Proposals: Recommendations include recognising legal professionals beyond advocates, reviewing advertising regulations, and modernising legal practice structures.
- Architecture and Accounting: Proposals call for streamlined registration, professional exams, and recognition pathways for foreign qualifications in architecture, alongside enhanced skilling and oversight in accounting and auditing.
- Engineering Framework: The report identifies a lack of a comprehensive statutory framework for engineering, especially in construction activities, recommending structured regulation to improve accountability and consistency.
Why This Matters
According to the findings, professional services act as crucial enablers for the broader services economy. Implementing regulatory harmonisation, mutual recognition agreements, and phased accreditation pathways can increase efficiency and output. The report notes that building a globally competitive professional services ecosystem supports high-skilled employment, entrepreneurship, and innovation, thereby reinforcing India’s services-led economic expansion.
What to Watch Next
Future developments outlined by the report depend on the adoption of sector-specific regulatory updates, the introduction of a statutory framework for engineering disciplines, and the establishment of mutual recognition agreements with international partners to ease professional mobility.
Frequently Asked Questions
What share of global services exports did India hold in 2024?
According to the NITI Aayog report, India was the world’s seventh-largest services exporter in 2024, accounting for a 4.3 per cent share of global services exports.
How rapidly has India’s professional services export segment grown?
The report states that professional services recorded an 18 per cent compound annual growth rate between FY15 and FY25, comprising 19.7 per cent of India’s services exports in 2023.
What specific reforms were suggested for the engineering sector?
The report pointed out the lack of a comprehensive statutory framework for engineering practice, particularly within construction and related activities, and recommended a structured framework to ensure greater clarity and accountability.
Source: NITI Aayog report via awazthevoice.in