SERVICE SECTOR

GROWTH BY
DR.KALPANA
AGRAWAL

What are services ?

a service is a means of delivering value to
customers by facilitating outcomes customers
want to achieve, but without the ownership of
specific costs or risks.
SERVICE SECTOR :- The part of the economy
that includes individuals and businesses that
produce services rather than goods. The
service sector includes education, finance,
communications,
health
care,
utilities,
wholesale and retail trade, and transportation.

Service sector of Indian

Service sector ofeconomy
Indian economy contributes to around 55
%of India's GDP . This sector plays a leading role in the
economy of India, and contributes to around 68.6% of the
overall growth in GDP.

The service sectors of Indian economy that have grown

faster than the economy as follows:

information technology (the most leading
service sectors in Indian economy)
IT-enabled services
telecommunications
financial services
community services

Growth rate of service sector

There has been 23% hike in service sectors of

trade, hotels, transport, and communications in

India's economy.
Financial services like banks, real estate,
insurance, and business services had a rise of
88.5%.
96% growth in service sectors including
community, social and personal services.
Software services by 33%
Business services by 82.4%
Engineering services and products exports by
23%

Contribution of service
sector
on
Indian
economy

It has emerged as the largest and fastest growing

sectors in the world economy, making higher
contributions to the global output and employment. It
is a large and most dynamic part of the Indian
economy both in terms of employment potential and
contribution to national income.

It covers

a wide range of activities:Health

Education
IT-enabled services
Retail services
Travel and tourism services

Health services: A strong and health care sector helps to build

a healthy and productive workforce as well as

stabilize population.
MINISTRY OF HEALTH AND FAMILY WELFARE
is responsible for
Implementation of various programmes in the
areas of health and family welfare.
Prevention and control of major communicable
diseases
Promotion of traditional and indigenous
systems of diseases.

Education services: Influences

improvement
in
health,
hygiene and demographic profile. It is
concerned
with
universalisation
of
elementary education, achieving full adult
literacy and meeting needs of secondary
and higher education for all.
India
has
achieved
impressive
demographic transition owing to decline
of crude birth, infant mortality rate as well
as gained high literacy rate in country.

IT-enabled services: One of the major functional pillars of this economy if Information

technology and IT-enabled services.

It makes continuous efforts to make India a front-runner in the
age of information revolution.
It continues to be a dominating sector.
A large number of Indian software companies have acquired
international quality certification.
MEDIA AND ENTERTAINMENT SERVICES:It is an intellectual property-driven sector with small to large
players throughout the world.
It covers film, music, radio, broadcast, television and live
entertainment.
It plays a significant role in creating peoples awareness about
national policies and programmes by providing information and
education to all.

Retail services: Retailing has been one of the fastest

growing service sector both in terms

of turnover and employment.
Many national and global players

have been investing in the retail

segment and are making all efforts
to further expand the sector.

TRAVEL AND TOURISM SERVICES:-

Being one of the largest industry in terms of

gross revenue and foreign exchange earnings,

it stimulates growth and expansion in other
economic sectors like agriculture, horticulture,
poultry,
handicrafts,
transportation,
construction etc. as well as gives momentum
to growth of service exports.
It is a major contributor to the national
integration process of the country as well as
preserver
of
natural
and
cultural
environments.

CONCLUSION : All this shows that services hold immense

potential to accelerate the growth of an

economy and promote general well being of
the people.
They
have the capacity to generate
substantial employment opportunities in the
economy as well as increase its per capita
income.
Without them, Indian economy would not have
acquired a strong and dominating place on the
world platform.
Thus SERVICE SECTOR IS CONSIDERED TO BE
AN INTEGRAL PART OF THE ECONOMY AND

THANK YOU