The Union Cabinet took some major decisions on Wednesday. In a boost to the  services sector, the government has identified 12 champion services which will be supported by a special fund of Rs. 5,000 crore.

In the interest of farmers, the government has enhanced bank guarantee limit for pulses and oilseeds for NAFED to Rs. 19,000 crore.

The 12 champion services include:

Information Technology & IT enabled services
Tourism and Hospitality
Financial services
Medical value travel
Transport and logistics services
Accounting AND FINANCIAL services
Audio Visual Services
Legal Services
Communication
Construction related engineering services
Environmental Services
Education services

These funds will be used by ministries to execute action plans in a time bound manner. The major benefits include:

Boost to employment generation
The services sector has an immense employment potential and contributes significantly to India’s GDP
This move will boost exports of various services from India

Other benefits are:

Increased productivity
and increased competitiveness

In a significant decision for the agricultural sector,  Cabinet Committe on economic affairs has approved doubling of Government guarantee to banks from Rs 9,500 crore to Rs.19,000 crore for procurement of pulses and oilseeds at MSP.

This provision will help in protecting farmers producing these commodities from making distress sales. It will also help in providing remunerative prices that encourage higher investment and production. The interests of consumers will also be safeguarded by making supplies available at reasonable prices.

Prime Minister’s Employment Generation programme has also been extended for three years with a total outlay of Rs 5,500 crore.

Clearly, the focus remains on maintaining the growth momentum of the economy while safeguarding the interests of vulnerable sections like farmers and the unemployed.