Service sector and economic growth

Service sector and economic growth

1. Service sector and Economic Growth Presented by – Megha

2. ContentS Introduction Types of service industries Effect on Economy Service sector industries in India And their effects on Indian economy SWOT Analysis of Indian service sector Initiatives of Government Conclusion

3. Introduction What is service sector ? Service sector is one of the third of the three economic sectors. This sector provides intangible goods like services. Financial services, management, consultancy , telephony and IT sector are good example of service sector. What is service sector industry ? The service sector industries are involved in providing services to businesses as well as final consumers.

4. Types of service Sector Services can be broadly divided into three parts A Business services Banking Insurance Transportation Warehousing B. Social services Health Education Administration C. Personal sevices Tourism Restaurants Recreational

5. % Share

6. Effects on Economy The service sector plays an increasingly important role in the global economy and the growth and development of countries. The 2011 World Development Indicators show that the services sector accounted For almost 71% of global GDP in 2010. For Developing countries service trade is the new frontier for enhancing their participation in international trade. Relative resilience in the latest financial and economic crisis.

7. Inter Country comparison Of sector wise Contribution To GDP

8. Service sector Industries in India And their effects on Indian Economy Service Sector industries in India Wide variety of sectors such as health care, tourism , education , engineering, Communication , transportation , information, technology, banking, finance, management among all others are available in India. The government of India recognizes the importance of promoting the growth in services sector and provides several services.

9. Effects on Indian economy The service serctor is the key driver of India’s economic growth. The sector contributed around 66.1% of its gross value added growth in 2015 -16 thereby becoming an important net foreign exchange earner and the most attractive sector for FDI ( Foreign Direct Investment) inflows. In 2014 , 57.9% of total GDP was produced by service sector. In service sector India’s world rank is 11 and GDP is $ 1185.79 Billion. India’s service sector has attracted FDI equity inflows in the period in April 2000 - March 2017 amounting to about US$ 59.47 billion which is about 17.92 % of the total foreign inflows.

10. Sector wise Contribution to GDP Of india

11. SWOT analysis oN Indian service sector Strength Highly skilled , English speaking workforce Cheaper workforce Abundant manpower Opportunities Indian companies should work closely with Western government and manage their concern and issues Development market Weakness Cost of telecom and network infrastructure is much higher in India than in U.S Lack of financial suppliers Political opposition Threats Competition from China, Phillipines and South Africa could have an edge on the Cost of factor Slowdown of demand

12. Initiatives of Government Ministry of civil aviation , Government of India launched ‘Digi Yatra’. Various scheme to attract FDI This service sector are increasing standards of living of Indian people , quality of service available Providing employment to the citizens

13. Conclusion Service sector is linked directly or indirectly to everyone of their livelihood. Service sector plays an important role for the development of the country. Government has taken initiatives for providing access to government services.