After China, India Has Second Fastest Growing Services Sector
In 2013 to 2014, foreign direct investment inflows to the services sector, declined sharply by 37.6 percent to $6.4 billion compared to an overall growth in foreign direct investment inflows at 6.1 percent resulting in the share of the top five services in total foreign direct investment falling to nearly one-sixth.
India has witnessed an increase in share in the world services exports from 0.6 percent in 1990 to 3.3 percent in 2013 was faster than in merchandise exports. Exports of software services, accounting for 46 percent of India's total services exports, reduced to 5.4 percent in 2013 to 14, travel, accounting for a nearly 12 percent share, witnessed negative growth of 0.4 percent.
The survey highlighted that India's Balance of Payments position has improved dramatically in 2013to14. "This has happened particularly in the last three quarters. This is owed in large part to measures taken by the by the government and the Reserve Bank of India (RBI) and in some part, to the overall macroeconomic slowdown that fed into the external sector," the survey said. Also added "Current account deficit (CAD) declined sharply from a record high of $88.2 billion (4.7 per cent of gross domestic product GDP) in 2012-13 to $32.4 billion (1.7 per cent of GDP) in 2013-14”.
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