Service Sector of Indian Economy contributes to around 55 percent of India's GDP during 2006-07. This sector plays a leading role in the economy of India, and contributes to around 68.6 percent of the overall average growth in GDP between 2002-03 and 2006-07. There has been a 9.4 percent growth in the Indian economy during 2006-07 as against a rise of 9 percent in the same during 2006-06. During this growth in Indian economy, the service sector witnessed a rise of 11 percent in the year 2006-07 against the 9.8 percent growth in 2005-06. The service sectors of Indian economy that have grown faster than the economy are as follows: * Information Technology (the most leading service sectors in Indian economy) * IT-enabled services (ITeS)
* Financial Services
* Community Services
* Hotels and Restaurants
There has been a 13 percent hike in the service sectors of trade, hotels, transport and communication in India's economy as compared to the 10.4 percent rise in the previous year. The financial services that comprise of banks, real estate, insurance, and business services witnessed a rise of 11.1 percent during 2006-07 against the 10.9 percent growth in the previous year. Service sectors including community, social, and personal services experienced a growth of 7.8 percent during 2006-07 as against 7.7 percent growth in the previous year.
The service sector of India has also witnessed a remarkable rise in the global market apart from the Indian market. It has experienced a rise of 2.7 percent in 2006 from that of 2 percent in 2004. The broad-based services in the trade sector has undergone a large-scale rise. A statistics concerning the growth of India's service sectors are listed below: * The software services in Indian economy increased by 33 percent which registered a revenue of USD 31.4 billion * Business services grew by 82.4 percent
* Engineering services and products exports grew by 23 percent and earned a revenue of USD 4.9 billion * Services concerning personal, cultural, and recreational had a growth of 96 percent * Financial services had a rise of 88.5 percent
* Travel, transport, and insurance grew by 23 percent
The software services in Indian economy along with the export of products is growing at a massive pace and thereby witnessed an alarming rise of 35.5 percent and reached a lumpsome amount of USD 18 billion. The IteS and BPO sectors grew by 33.5 percent and earned a revenue of USD 8.4 billion. The service sector of Indian economy has been the most high-powered sector in India's economy. It has also been focusing in various investments of late. As Indian economy is looking forward for more liberalization, sectors like banking are on its way to loom large and occupy a more significant position in India's economy. The services sector has been at the forefront of the rapid growth of the Indian economy. As per the Central Statistical Organisation (CSO), Ministry of Statistics and Programme Implementation: * Trade, hotels, transport and communication grew 12.4 per cent in Jan-March 2010 over the corresponding quarter from a year earlier * Similiarly, financing, insurance, real estate and business services grew at 7.9 per cent in the fourth-quarter of 2009-10 * Community, social & personal services grew by 1.6 per cent in the fourth quarter Indicators
Lead indicators suggest that the pace of expansion in the services sector activity is likely to be sustained. * Foreign tourist arrivals (FTAs) during January to April 2010 were 19.18 lakh, an increase of 10.6 per cent, over 17.35 FTAs over the corresponding quarter in 2009 * According to the Telecom Regulatory Authority of India (TRAI), the number of telephone subscribers in the country reached 621.28 million as on March 31, 2010, an increase of 3.38 per cent from 600.98 million in February 2010. With this the overall tele-density (telephones per 100 people), touched 52.74...
Please join StudyMode to read the full document