Service Sec

8/2/2019 Service Sec..

1/13

Service sector contributing to

indias economy


2/13

INTRODUCTION

India is pacing towards its dream ofconversion into developed country by 2020.

Many of the highly paid software wizards onthe globe, have their origin in india, andhence the emergence of service sector hastaken a steep positive slope in india.

A well developed country needs a wellestablished service sector


3/13

HISTORY

Since 1960 there has been a steady declinein the contribution of agriculture and primarysector to gross domestic product, and its

place has been taken by sevice basedenterprise.

Thus, service sector encompasses the majorarea of trade finance, insurance,communication, public utilities, transpotation,health care,education, business and publicservices.


4/13

TheEconomy of Indiais theninth largestin theworld bynominal GDPand thethird largestbypurchasing power parity(PPP).[The country isone of theG-20 major economiesand a memberofBRICS.The country'sper capita GDP(nominal)was$1,527(IMF, 135thin the world) in 2011, makingit a lower-middle income economy.


5/13

VARIOUS FACTOR THAT CONTRIBUTE TO

SERVICE SECTOR

Trade

Hotels and restaurants

Railways

Other transport & storage

Communication

Banking

Realestate

Personal services


6/13

Role of agricultural industrial and service sectorin GDP

1.Economic development in India still depends on the varioussectors that constitute the Indian economy agriculture, servicesand manufacturing industries.

2.In 2009, the agricultural sector contributed 17.5% to the entireGDP, and more than 50% of the total labor force working in Indiais employed in the agricultural sector.

3.Industry accounts for 28% of the GDP and employ 14% of the

total workforce.

4.India is 13th in services output. The services sector providesemployment to 23% of the work force and is growing quickly, witha growth rate of 7.5% in 19912000, up from 4.5% in 195180.
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_sector_compositionhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_sector_composition


7/13

Cont

.

It has the largest share in the GDP, accounting for 55% in 2007,up from 15% in 1950.


8/13

REAL GDP BY SECTORS

The sectoral breakdown of GDP in 2008 showsservices by far as the largest contributor (66.8percent of total) followed by construction (12.2percent), public administration, and industry (Table 2).

Within services, the largest subsectors weretrade(24.8 percent), transport and communication(8.2 percent), financial services (7.6 percent), andeducation (7.4 percent). The sector of energy and

water supply had a negative share ,since its value-added has been negative since 2005the value of itsinputs exceeds the value


9/13

GROWTH EXPECTED IN INDIA IN 2006

GDP USD 590 billionGDP growth rate 9 %

Services contribution 54 %

FDI limit not 100 percent in major industrysectors such as Telecom, Semiconductors,Automobiles, etc.

Balance of Trade USD (-)46.2 billion

Investment goal USD 250 billion


10/13

IN 2008

GDP USD 750 billion

GDP growth rate 9.5%

Services contribution 60 %

FDI limit is expected to be close to 100 percent inmajor industry sectors such as Telecom,Semiconductors, Automobiles, etc.

Balance of Trade Should increase with surgingexports as compared with imports



11/13

IN 2012

GDP USD 900 billion

GDP growth rate 9%

Services contribution 60-65 %

FDI limit is expected to be 100 percent in majorindustry sectors such as Telecom, Semiconductors,Automobiles, etc.

Balance of Trade Should be positive with increasedlevel of exports as compared with imports



12/13

Service sector

1.Service sector is the lifeline for the social economic growth of a country.It is today the largest and fastest growing sector globally contributingmore to the global output and employing more people than any othersector.

2.The real reason for the growth of the service sector is due to theincrease in urbanization, privatization and more demand for intermediateand final consumer services. Availability of quality services is vital for thewell being of the economy.

3 .Indian service sector has witnessed a major boom and is one of the

major contributors to both employment and national income inrecent times.


13/13

Documents

Service Sec