SERVICE SECTORContributing to Indian

GDP

Services

A product without physical characteristics.

A bundle of performance and symbolic attributes designed to produce consumer want satisfaction.

Service is any act or performance that one party can offer to another that is essentially intangible and does not result in any ownership of anything.

What Is Service Sector?

The portion of the economy that produces intangible goods.

The part of the economy that includes individuals and businesses that produce services rather than goods.

“Soft" parts of the economy.

People offer their knowledge and time to improve productivity, performance, potential, and sustainability.

Production of services instead of end products.

Provision of services to other businesses as well as final consumers.

Focus is on people interacting and serving the customer rather than transforming physical goods.

What Is GDP

Gross Domestic Product(GDP) refers to the market valve of all final goods and services produced within

a country in a given period.

GDP per capita is often considered as a indicator of a country standard of living.

The service sector, also called the “Tertiary sector” is one of the three sectors of the economy.

Other Sectors Are:

Primary sector: It covers areas such as farming,mining and fishing. Secondary sector: It covers manufacturing and making things.

Service Sector of Indian Economy  

• Nearly half of India’s GDP comes from service sector.

• The service sector of India has also witnessed a remarkable rise in the global market apart from the Indian market.

Service Sector Includes

Government Telecommunication Pharmaceuticals Hospitality/Tourism Mass media Healthcare/hospitals Public health Information technology Waste disposal Banking Insurance

Financial services FMCG Legal services Construction Food processing Consulting Retail sales Franchising Real estate Education

The services sector is a vital cog in the wheel of the Indian economy. The sector, accounting for 60 per cent of the gross domestic product (GDP), grew 5 per cent in

the FY13.

CONTRIBUTION OF SERVICE SECTOR

Service tax is fast turning out to be an important tool of revenue collection for central government.

The directorate of service tax, which began with a modest collection of Rs. 410 crores in 1994-95, experts to mop up nearly 1,20,000 crores in year 2013-14.

Key Statistics

SERVICES SECTOR, INCLUDING INSURANCE AND REAL ESTATE, GREW BY 9.1 PER CENT IN JANUARY-MARCH QUARTER OF 2013. THE SEGMENT GREW BY 8.6 PER CENT IN 2012-13.

Indian service sector enjoyed foreign direct investment (FDI) inflows amounting to US$ 547 million during April-May 2013-14, according to the recent statistics released by the Department of Industrial Policy and Promotion (DIPP).

TRADE, HOTELS, TRANSPORT AND COMMUNICATIONS SEGMENT GREW AT 6.2 PER CENT IN THE JANUARY-MARCH QUARTER THIS YEAR AS AGAINST 5.1 PER CENT IN THE SAME PERIOD A YEAR AGO. THE SECTOR GREW AT 6.4 PER CENT IN 2012-13.

Community social and personal services expanded by 4 per cent in the fourth quarter of FY13 while they grew by 6.6 per cent in 2012-13.

A comparison of the services performance of the top 15 countries for the 11 year period from 2001 to 2011 shows that

the increase in share of services in GDP is the highest for India with 8.1 percentage points. These 15 top countries include

major developed countries along with Brazil, Russia, India and China.

Recent Investments/ Developments

IN ANOTHER BID TO MAKE THINGS EASIER FOR PASSENGERS, INDIAN RAILWAY CATERING AND TOURISM CORPORATION (IRCTC) HAS LAUNCHED A PILOT PROJECT OF TICKET BOOKING THROUGH NON-INTERNET BASED MOBILE PHONES WITH EFFECT FROM 1ST JULY 2013.

E-commerce and internet are one of the fastest growing service sub-segments in the Indian economy. Finding the Indian e-commerce space lucrative enough, Amazon, the world’s largest online retail company, has entered the market with a promise of ensuring low prices for users and a better platform for sellers.

According to recent estimation forecast nation,

it was visualized that by March-April 2013 the

contribution of service sector to Indian GDP would be at 60%. This

makes clear that we are living in “ Service

Imperative Era”.

Conclusion

Service sector has increased its importance over the decade with the advent of competition.

Globalization fuelled the rapid changes in service sector.

Widens broad spectrum of commercial and social activities.

The ultimate aim of service sector is to adopt innovation strategies in delivering quality services to customers.

“ THANK YOU “