Have you ever imagined that the service sector will become a major contributor to the world economy over? In my view no one has really thought in such a way. India’s services sector covers a wide variety of activities such as trade, hotel and restaurants, transport, storage and communication, financing, insurance, real estate, business services, community, social and personal services, and services associated with construction.
Fascinating but true, India or America or UK service industry has grown by leaps and bounds. There are many reasons which can be attributed for such a tremendous growth in services. Globalization, more working women in earning population , advancement in technology, more disposable income , economical affluence, rampant migration are some of them. In fact, services now employ highest number of skilled and semi-skilled manpower resources all over the world.
According to one of the popular newspaper in India “The Hindu”-
“India has the second fastest growing services sector with its compound annual growth rate at 9 per cent, just below China’s 10.9 per cent, during the last 11-year period from 2001 to 2012, the Economic Survey for 2013-14 said. Russia at 5.4 per cent is a distant third.”
The service sector with around 52 percent contribution to the GDP is one of the largest and fastest growing sectors in the economy. It has also contributed towards foreign investment flows, employment generation and exports. With such a great potential for growth, corporates are now moving forward towards services and trying to get a competitive edge by using services as a differentiation tool.
Further, initiative is also been taken by government to develop and increase services role in our economy. The time has come to see the services from the glass of economic growth and accept them as a new chapter for economic growth.
Prof. Sonica Rautela
SCMS, Pune
SCMS Pune Ignited Minds 