Growth of Service Sector

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  • Topic: Economy, Industry, Tertiary sector of the economy
  • Pages : 35 (11285 words )
  • Download(s) : 443
  • Published : June 30, 2012
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Introduction

One of the requirement to be fulfilled to get an MBA-Industry integrated degree, is to identify a problem faced by the corporate and by the current business instrument preventing in our country .In spite of global financial meltdown, India is able to recover quietly and on capital method is vibrant .Retail and corporate investors are gaining faith and confidence in the capital market and they are willing to invite there investible funds. In the last decade investment opportunities have increased in all the sectors .It is a known fact the service sector has grown much faster than any other sector and its contribution to GDP is much greater in this background, I consider it appropriate to undertake a project study on “investment opportunities in service sector”. Investment is a process of sacrificing some use of funds today for the benefits to be in future. More specifically, investment is the commitment of money or capital to the purchase of financial instruments or other assets so as to gain returns in the form of interest, dividends, and appreciation of the value of the instrument (capital gains).  It is related to saving or deferring consumption. Investment is involved in many areas of the economy, such as business management and finance whether for households, firms, or governments. An investment involves the choice by an individual or an organization, such as a pension fund, after some analysis or thought, to place or lend money in a vehicle, instrument or asset, such as property, commodity, stock, bond, financial derivatives (e.g. futures or options), or the foreign asset denominated in foreign currency, that has certain level of risk and provides the possibility of generating returns over a period of time. Investment also carries various types of risk. The investment that has not been thoroughly analyzed can be highly risky with respect to the investor because the possibility of losing returns and also principal is not within the owner's control. The difference between speculation and investment can be subtle. It depends on the investment owner's mind whether the purpose is for lending the resource to someone else for economic purpose or not. In the case of investment, rather than store the good produced or its money equivalent, the investor chooses to use that good either to create a durable consumer or producer good, or to lend the original saved good to another in exchange for either interest or a share of the profits. In the first case, the individual creates durable consumer goods, hoping the services from the good will make his life better. In the second, the individual becomes an entrepreneur using the resource to produce goods and services for others in the hope of a profitable sale. The third case describes a lender, and the fourth describes an investor in a share of the business. In each case, the consumer obtains a durable asset or investment, and accounts for that asset by recording an equivalent liability. As time passes, and both prices and interest rates change, the value of the asset and liability also change. Types of Sectors

* IT and IT Enables Service
* Hospitality Industry
* Health Care
* Tourism
* Transport and Logistic Service
* Community Service
* Financial sector
During the past decade IT and IT enabled services have a faster growth as compare to other sectors. The Indian Information Technology industry accounts for a 5.19% of the country's GDP and export earnings as of 2009, while providing employment to a significant number of its tertiary workforce. More than 2.5 million people are employed in the sector either directly or indirectly, making it one of the biggest job creators in India and a mainstay of the national economy. In 2010-11, annual revenues from IT-BPO sector is estimated to have grown over US$76 billion compared to China with $35.76 billion and Philippines with $8.85 billion. India's outsourcing industry is expected to increase to...
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