Rise of Service Sector in India
Indian service sector has grown tremendously in the last few years.
Today it has been globally recognized for its high growth and
development. The fact that in the last 5 years this sector has been
growing at an annual rate of about 28 % speaks volumes of its success.
At the moment service sector contributes nearly 55% of India's GDP. The
government of India is taking major steps to give a boost to this
sector. The service sector also contributes heavily on India's foreign
exchange. By 2012, it is expected that service exports is also going to
be around 6% by 2012, if the annual growth rate of 28% is maintained.
Leading Service Sectors of India
Today India has a wide range of professionals and versatile expertise
in the field of Health Care, Education, Engineering, Information
technology, Banking, Finance, Tourism, Management etc. Phenomenal growth
has been recorded in Information Technology and Business Processing
outsourcing (BPO).At the same time some of the other leading service
sectors of India are that of community services, Hotels and Restaurants,
Telecommunications etc. Not only in India, but the professional cadres
from the above sectors are also being hired by the developed countries
of the world such as USA, UK, Australia, Russia etc.
Efforts to Improve the Service Sector
Some of the economists believe that there should be balanced growth
between the industrial Sector and the service sector, otherwise the
growth of the service sectors will not be sustainable. India should try
to eliminate the barriers in other service sectors such as accountancy,
retail, postal, and rail transport.
Since now the service sector gives rise to more than half the GDP, it is
sure to create ripples in the Indian economy in the future.
