India Now - page 17

S E R V I C E S E X P O R T S
COVE R S TORY
15
|
APRIL-MAY 2015
India’s growth story
has been unique in
many ways and it stands out today as one of
the fastest growing major economies glob-
ally. The services sector and its growth path
clearly set the Indian economic growth story
apart. India has the second fastest growing
services sector in the world with compound
annual growth rate (CAGR) of 8.7 per cent
(between 2001–2013) according to the Eco-
nomic Survey for 2014–15. It ranks next to
China which is growing at 10.7 per cent. The
Survey highlights that the growth of ser-
vices sector GDP in India has been higher
than the overall GDP growth in the period
FY2001 to FY2014.
In fact, India’s transition to a knowledge
economy was fuelled by a rapidly grow-
ing services sector which in turn grew on
the back of an expanding IT industry. The
growth in the income levels of the economy
also saw other services sectors like tour-
ism, health, telecom, media, etc., growing
neck to neck, as the overall economy grew
and there was an increase in per capita
income. The 1990s saw the Indian economy
leapfrog the intermediate manufacturing,
establishing a services-led model of growth.
The dominance of the services sector has
also catapulted India into the category of a
knowledge economy straight from being an
agrarian one.
Backed by strong
policy focus and
building on its native
strengths, India
prepares to service
the world.
By Sangita Thakur Varma
Design by Sristi Maurya, Illustration by Shigil Narayanan
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