The services sector has been at the forefront of the rapid growth of the Indian economy.
As per the Central Statistical Organisation (CSO), Ministry of Statistics and Programme Implementation:
Lead indicators suggest that the pace of expansion in the services sector activity is likely to be sustained.
According to an HSBC survey, HSBC Markit Business Activity Index, based on a survey of 400 firms, rose to 62.1 in April 2010.The services index has expanded robustly for the twelfth month in April 2010.
According to World Trade Organisation's (WTO) "International Trade Statistics 2009" released in November 2009, India ranks ninth in commercial service exports.
According to the Economic Survey 2009-10, services exports reached US$ 102 billion in 2008-09 registering a growth of 12.5 per cent over 2007-08. The miscellaneous services category share has increased by 16.1 percentage points to 76.4 per cent in 2008-09 as compared to 2000-01. While the share of software services increased by 6.5 percentage points to 45.5 per cent, the share of non-software services increased by 9.6 percentage points to 30.9 per cent in 2008-09.
According to the Department of Information Technology, the share of information technology enabled services (ITeS) and business process outsourcing (BPO) exports has expanded. The total ITeS-BPO exports is estimated to have risen from US$ 1.5 billion in 2001-02 to US$ 12.7 billion in 2008-09, a CAGR of about 39.2 per cent. BPO now accounts for about 27 per cent of total exports.
According to data released by the Department of Industrial Policy and Promotion, the services sector (financial and non-financial) attracted foreign direct investments (FDI) worth US$ 4.4 billion between April and March 2009-10 while the cumulative FDI between April 2000 and March 2010 has been US$ 23.6 billion, accounting for 21 per cent of the total FDI inflow.
Some of the investments in the service sector include: