Services
India was the eighth largest exporter of commercial services in 2017.

Services Industry Analysis

Latest update: November, 2018

Growth

 

Last Updated: October, 2018

Services sector is the biggest one in India and contributes more than half of Gross Value Added (GVA). As of 2017, 33 per cent of India’s employed population was working in the services sector. India ranked as the eighth largest exporter of commercial services globally in 2017. The sector is a major contributor to the country’s FDI Inflows. Nikkei India Services Purchasing Managers' Index (PMI) stood at 50.9 in September 2018, indicating growth in services activity.

Services exports comprise a major part of the total exports of India. Net Services exports from India stood at US$ 18.7 billion in Q1 2018-19 (P).

India is the export hub for software services. It has a 55 per cent share in the US$ 185-190 billion global sourcing market in 2017.

Sub-sectors that are performing well in FY18 are:

  • Aviation – India’s air passenger traffic doubled to 117.18 million in 2017 from 59.87 million in 2011. It stood at 169.45 million during April-September 2018.
  • Tourism – Foreign Exchange Earnings from tourism rose 20.8 per cent year-on-year to US$ 27.7 billion in 2017.
  • Information technology-business process management (IT-BPM) – Software exports are expected to grow 7-8 per cent and the domestic market is expected to expand by 10-11 per cent*.

The Government introduced ‘Services Exports from India Scheme’ (SIES) aimed at promoting export of services from India by providing duty scrip credit for eligible exports. Under this scheme, a reward of 3 to 5 per cent of net foreign exchange earned is given for Mode 1 and Mode 2 services. In the mid-term review of Foreign Trade Policy 2015-20, SEIS incentives to notified services were increased by 2 per cent. Also, Government of India has identified 12 sectors under the Champion Services Sectors Initiative which is aimed at formulating cross-cutting action plans to promote their growth.

Note: P – Provisional, * According to NASSCOM, Q1 2018-19 – April-June 2018

Indian Services Industry Report (October, 2018)
Download PDF Download PDF  (Size: 1.12 MB )
Indian Services Industry Report (September, 2018)
Download PDF Download PDF  (Size: 1.06 MB )

Click to access the Services Industry Archived Report

IBEF Blog - INDIA ADDA – PERSPECTIVES ON INDIA More

author_logo-ibef1.jpg INDIA-COLOMBIA TRADE: AIMING FOR NEW LANDMARKS!
IBEF, Knowledge Centre

India and Colombia’s diplomatic relations date back to the year 1959. Till today, the relations have only been growing stronger, friendlier and cordial with Colomb...

author_logo-ibef1.jpg ISRO: Flying high!
IBEF, Knowledge Centre

Indian Space Research Organization (ISRO) is counted amongst the top six Government space agencies in the world today. Its vision to 'harness space technology for national ...

author_logo-ibef1.jpg INDIA'S GOVERNMENT E-MARKETPLACE: MAKING PROCUREMENT SIMPLE!
IBEF, Knowledge Centre

The Government e-Marketplace (GeM) is a national public procurement platform in India that was launched about two years back, in August 2016. Till date, the platform cla...

author_logo-ibef1.jpg Indian Logistics Sector: Shining bright!
IBEF, Knowledge Centre

The Indian logistics sector is on a big growth tide. According to the domestic rating agency ICRA, Indian logistics sector is expected to grow at a rate 8-10 per cent ove...

author_logo-ibef1.jpg India's Franchise Industry: The road so far and way forward!
IBEF, Knowledge Centre

Whether you are in a big metropolitan city or a smaller town, one look around you is bound to reveal bright signage with recognisable names all around. From heading to th...

author_logo-ibef1.jpg India: Strong in Tractor Manufacturing
IBEF, Knowledge Centre

In India, agriculture and its allied sectors are the primary source of livelihood for a large chunk of domestic population. In 2017, the Gross Value Added (GVA) in these...

ideas More

Ideas

Smartivity: Making Learning Smarter
Smartivity strives to focus on mind-and-body engagement for children in the era in which most technology-based products are created for entertainment and offer passive engagement and mind-numbing experiences. Their products encourage children to become 'makers' instead of 'consumers'. ...

JOIN IBEF.org

Join IBEF.org now. Enjoy FREE subscriptions downloads, updates and more.

Error

Already a member?
Login / Retrieve Password