Services Sector In The Indian Economy

Contents: Emerging India: Challenges and Opportunities, Human Rights Education, Elementary Education in India: Now and Then, Secondary Education in India, Nonviolence: A Tool for Promoting Tolerance in Schools, Towards Improving Quality of Higher Education, Quality Culture and Academic Governance, Challenges in Professional Education in Emerging India, Management Education: Reflections on the Needs of Industry, Healthcare in India Strategies for Globalization, Marketing of Integrated Health Care Unit: A Study, Marketing of Hospital Services in India, Total Quality Management in Hospitals, Ethics and Values: A Study of Health Care Services, Biomedical Waste Management, Marketing Practices in Corporate Hospitals: An Appraisal, Prospects of Herbal Formulation and Export Potential, Developed India: Role of the Service Sector, Emergence of Service Era and Service Quality, Managing Insurance Services in the New Millennium, Insurance Services in India.

This book addresses a range of issues relating to the nature and implications of growth of India’s services sector, including factors contributing to the rise of services, output measurement and heterogeneity, growth of services exports, and employment in services sectors. From service tax, exchange rate and services exports, policy interest, employment potential and diversity of the sector to challenges in financial inclusion, trajectories of ICT services and contribution of education to GDP, it brings together diverse themes to highlight major concerns in the wake of the prominent role that services have played in placing India among the fast-growing economies in the world in recent years. The services sector in India accounts for more than 60 per cent of the GDP of the country and 28.6 per cent of its employed across government, private or state corporations and non-government organisations. The volume explores whether the services sector (beyond agriculture and industry) holds the promise of fulfilling the benefits from India’s demographic dividend for its economic transformation through sustainable growth. With key empirical analyses of household, enterprise and macroeconomic data for India within both formal and informal sectors, this topical book will be useful to scholars and researchers of economics, Indian economy, political economy, development economics, development studies, public policy and South Asian studies and also to development professionals, policy makers and industry specialists.

The services sector has emerged as the most dynamic and important sector in India in the post-liberalization era. It has increased its contribution to the Indian economy not only in terms of GDP, but also in exports. However, one area where the services sector has not yet contributed significantly is employment creation. This has raised questions regarding the inclusivity of India’s services sector-led growth story. This book is a collection of papers devoted to understanding and analysing the role of the services sector in GDP, trade and inclusive growth in the Indian economy. These contributions examine specific issues related to the services sector in India, such as employment, trade cycles, foreign direct investment, and migration, and also analyse sector specific issues in selected services like retail, insurance, IT-BPO and aviation.

ABOUT THE BOOK Since the early 1990s, the growth process in India has been marked by a remarkable performance of services sector. The experience of developed countries suggests that growth of services sector followed the growth of industrial sector. However, India?s experience in this regard is somewhat different. The sectoral shift in favour of services sector over the last two decades has taken place in the face of an almost stagnant share of industry and a reduced share of agriculture in GDP. In fact, it was the growth performance of the services sector during the 1990s which sustained the overall growth of the Indian economy, particularly in times of adverse agricultural shocks and industrial slowdown. While software exports are a well-known success story, India is now an important venue for many tasks in services such as financial accounting, call centres, processing insurance claims, and medical transcription. The future potential of growth in these areas appears to be considerable. This book explains recent policy measures by the Government of India to make India?s services sector internationally competitive. The book focuses on the following services: financial services, IT and IT-enabled services, retail trading services, healthcare services, insurance services, educational services, transport and communication services, and tourism. It also includes a chapter on taxation of services in India.

This Second Revised And Enlarged Edition: 2002 Provides A Good Insight Into The Current State Of Indian Economy, Highlighting The Challenges Of The Growth Process And Opportunities Covering The Areas Of The Economy, Banking And Finance, Agriculture, Industry And Infrastructure And The External Sectory.

A striking aspect of India's recent growth has been the dynamism of its services sector. In 2010, it accounted for 57 percent of the country's GDP and 25 percent of its total employment. The results do not conform to the growth experience of currently industrialized countries or other developing economies. Is the increasing share of the service sector in India's total output simply notional, as several activities that were earlier classified in the industrial sector are now subsumed in services' value added, or because the relative price of services has increased over time? No. The sector's growth is real - it is linked to household final demand, policy reforms and increased service exports. Is this service-led growth process sustainable? That remains an open question because the service sector is highly heterogeneous, ranging from software services and business process outsourcing to wholesale and retail trade and personal services. These subsectors vary considerably in the context of different economic characteristics that are important for development.

Service sector also recognized as tertiary or residual sector is indispensable for economic development in any economy including India. It has developed as the main and fastest-growing sector in the global economy in the last three decades. The present study makes an analysis of service sector in Indian economy. The paper also makes an analysis of Indian services sector through examining its growth and contributions in the economy. The paper also highlights reform measures that will enable the services sector to not only to grow at a fast pace but also create quality employment and attract investment. The study confirms that services sector has grown at the significant rate in comparison to other sectors. Its growth rate is found to be higher than growth of overall GDP. Rising share of this sector in GDP over covers the poor performance of agriculture sector. As a service, sub-sector, trade is dominant all in terms of its contribution in Indian GDP. The employment percentage in service sector as well as in industry sector is rising while in agriculture, it is falling continuously. A large proportion of Indian population is still engaged in agriculture sector and the next largest employer is service sector where trade, hotels & restaurants and community, social & personal services are the significant generator of employment. Thus, service sector which is dominant in terms of its growth & shares serves as an engine of growth for Indian economy. It is important for a developing country like India with a large and young population to generate quality employment and move up the value chain. India needs private investments in key infrastructure services such as transport, energy and telecommunications.

This study reveals the importance and significance of the services sector in the development of the Indian economy. The changing Indian economic and demographic structure has led to changes in life style at a faster pace than economic growth. The demographic imbalance complicates the task of creating and expanding the job opportunities. No doubt the contribution of agriculture and manufacturing sectors is fundamental to gear up the pace of the development process, but both primary & secondary sectors are finding it difficult to cope with the mounting multiplication of socio-economic requirements. The tertiary sector of the economy i.e. services because of its increasing share in the GDP has, therefore, become significant. This study is an attempt to portray the pattern of growth of various services comprising the services sector and analyze the causal factors contributing to their growth. The first part of the paper in introduction examines the past data for deciphering the relative changes in the shares of the primary, secondary and tertiary sectors and discusses the fundamental reasons for these changes at the macro level. The second part of the paper examines the different services constituting services sector and analyses their respective shares in the sector as well as the economy with a view to understand the trends in the structure of the sector. The trend has been used to identify the potential of the specific services in the context of economic and social changes underway in India. The paper concludes with the nature of impact this trend is expected to make in generating business opportunities.

On suggestions to policy makers on economic issues of India post 1997/98 based on experiences in past 50 years.