An integral part of India’s structural reform program and liberalisation, the services sector is one of the fastest growing sectors in the country. Service sector or ‘tertiary’ sector accounts for about 57 per cent of India’s gross domestic product (GDP) and forms the backbone for social and economic development.
The sector entails industries like banking & financial services, education, healthcare, information technology (IT), telecom, media & entertainment, management, security, transportation and many more.
The HSBC Markit Business Activity Index—which measures service sector activity—rose to 58.2 in July 2011 from 56.1 in June 2011, supported by confidence among service providers regarding future business prospects.
Indicators/ Industry Dynamics
The lead indicators, discussed as following, suggest that the progress made by the service sector in India is here to stay.
As per the Central Statistical Organisation (CSO), Ministry of Statistics and Programme Implementation:
India emerged as the 10th biggest exporter of services worldwide for the year 2010, up from 12th position in 2009, according to recently released World Trade Report 2011. In terms of value in 2010, India exported services worth US$ 110 billion.
India's service exports stood at US$ 34.34 billion for April-June 2011. The service exports receipts for the month of June 2011 were US$ 11.04 billion.