India has second fastest growing service sector
India is ranked 12th in terms of services GDP among the world’s top 15 countries, says the Economic Survey tabled in the Parliament on Wednesday.
India has the second fastest growing services sector with its CAGR at 9.0 per cent, just below China.
The growth rate of the combined category of trade, hotels, restaurants, transport, storage, and communications decelerated to 3.0 per cent, says the Survey.
Financing, insurance, real estate, and business services grew robustly at 12.9 per cent.
Services constitute a 57 per cent share in GDP at factor cost in 2013-14, says the Survey.
India’s share in world inbound tourist arrivals increased to 0.63 per cent in 2013.
The size of domestic tourism has also crossed an estimated 1.1 billion annual travel visits.
The IT–Business Process Management (BPM) sector grew by an estimated 10.3 per cent, reaching US$ 105 billion in 2013-14.
Services like software and telecom were big ticket items that gave India a brand image in services.