Role of service sector in the Indian GDP. Its major parts and their contribution in India.

1. SERVICE SECTOR
Contributing to Indian
GDP

2. 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.

3. 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.

4.  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.

5. 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.

6. 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.

7. 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.

8. 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

9. 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.

10. 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

11. Key Statistics

12. 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).

13. 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.

14. 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.

15. Recent Investments/ Developments

16. 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.

17. 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”.

18. 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.

19. “ THANK YOU “