After China, India Has Second Fastest Growing Services Sector
BANGALORE: Finance Minister Arun Jaitley presented the Economic Survey for the year 2013 to 2014. The survey said that, India has the second fastest growing services sector with its Compound annual growth rate at 9.0 percent, just below China during 2001 to 2012, reports Economic Times.
"Also, India ranked 12th in terms of services Gross Domestic Product in 2012 among the world's top 15 countries in terms of Gross Domestic Product. While services share in World Gross Domestic Product was 65.9 percent and in employment was only 44 percent in 2012, in India, they were 56.9 percent and 28.1 percent respectively," the survey said.
The growth rate of the combined category of trade, hotels, restaurants, transport, storage, and communications decelerated to 3.0 percent. Financing, insurance, real estate, and business services grew robustly at 12.9 percent.
Services constitute a 57 percent share in GDP at factor cost in 2013 to 14. India's share in world inbound tourist arrivals increased to 0.63 percent in 2013.The size of domestic tourism has also crossed an estimated 1.1 billion annual travel visits. The IT-Business Process Management sector grew by an estimated 10.3 percent, reaching US$ 105 billion in 2013to 2014. Services like software and telecom were big-ticket items that gave India a brand image in services.
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