Service sector – driver of India’s growth
(Friends, these are the basic points. Please don’t worry too much if you don’t remember the statistics. Read the entire article and understand how service sector has contributed to the economy.)
- The share of manufacturing in India’s GDP has remained stagnant around 16 per cent for nearly three decades.
- India’s growth story has been driven by services, which has a 55 per cent share in the economy.
- Services exports have outperformed goods exports in the recent years, due to which India’s share in the world’s commercial services exports has risen steadily over the past decade to reach 3.5 per cent in 2018 — twice the sector’s share in the world’s merchandise exports,1.7 per cent.
- The Centre rolled out a whopping Rs 20.9 lakh crore stimulus package to pull the economy out from the ravages of the pandemic. The package had a strong focus on the MSME sector, employee provident fund, power distribution companies and taxation, among other affected areas. Most of the stimulus package is in the form of funding and loan opportunities and, injecting liquidity to the market.
- The sector’s significance in the economy continues to grow with its share amounting to two-thirds of total FDI inflows into India and about 38 per cent of total exports.