Which Service Sector is The Most Powerful in India?



Darpan Jain, IAS, Joint Secretary, Department of Commerce, Ministry of Commerce and Industry, said the signs of a rising economy are directly related to its earnings from the service sector. Up to 95 per cent of GDP falls from the service sector of many developing countries. Despite India's headwinds in the industry, it still lags behind, he said on Tuesday at a media interaction here. 

The service sector contributes 60 percent to India's GDP and 70 percent to Karnataka 's GDP, according to data from the trade ministry. Some 55 percent of FDIs coming to India come from the service sector, which creates more jobs than any other sector. In the $100 bn healthcare market, where India's share is just around $1 billion, there is tremendous opportunity for India. Per year, more than 1 crore individuals fly globally for healthcare, and out of this, India receives just 2 to 3 lakhs.


Along with the Services Export Promotion Council (SEPC) and the Confederation of Indian Industry (Cll), the Ministry of Commerce and Industry of the Government of India will organise the 5th Global Services Exhibition (GES) in the city between 26 and 28 November.  In college, only about 45,000 of the 50 lakh students who move abroad for higher education worldwide come to India. India spends more than $1 bn on maintenance (MRO) in the civil aviation market, much of which is outsourced to other nations. 


Similarly, India imports products worth around $500 billion per year in shipping and just a small fraction of it goes to Indian carriers. The country has tremendous tourism potential in the service sector, said Sudhanshu Pandey, Additional Secretary, Ministry of Commerce and Industry. India 's existing share of the $5.4 trillion global tourism industry is a mere $234 billion currently.


Of all industries, the service sector in India has the highest job elasticity. It also has the capacity for tremendous growth as well as the opportunity to produce highly profitable work-contributing to the production of revenue. The Skill India programme seeks to meet its goal of skilling / up-skilling 400 million people by 2022 in order to overcome the problem of job growth. This is primarily achieved by supporting private sector projects in the area of professional growth projects and supplying them with the requisite resources.


Every year, the world sees just 11 million international visitors, which is minuscule, and Karnataka alone has the capacity to draw more than 40 million annual visitors, he insisted.  Jagadish Shettar, Minister for Large & Medium Scale Manufacturing, commenting on Karnataka 's determination to emerge as a major player in the tourism sector, said Karnataka was one of the country's fastest growing states at 9.6 percent, a pace higher than the national average. 


In the service sector, we have become a visionary, a champion in IT / ITES. In science, healthcare and biotechnology, we are one of the leading nations. As Karnataka is home to many heritage sites, the Western Ghats, biodiversity hotspots and historical towns, we have increased our attention on tourism, ” the minister added.

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