Professional Documents
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ON
PRESANTED BY:-
Service is Intangible
Services sector in future providing about 70 per cent of the new job
opportunities in the economy
Thus, given the employment trends as emerging from diverse sources and the
employment potentials at the sectoral levels, it may be argued that a broad-
based high growth of GDP would lead to higher employment in the economy,
with services sector playing a lead role.
ACTIVITIES COMPRISING THE SERVICE
SECTOR
(a) Trade`
(b) Hotels and restaurants
(c) Transport including tourist assistance activities as well as
activities of travel agencies and tour operators
(d) Storage and communication
(e) Banking and insurance
(f) Real estate and ownership of dwellings
(g) Business services including accounting; software development;
data processing services; business and management
consultancy; architectural, engineering and other technical
consultancy; advertisement and other business services
(h) Public administration and defence
(i) Other services including education, medical and health,
religious and other community services, legal services, recreation
and entertainment services
(j) Personal services and activities of extra-territorial organizations
and bodies.
SERVICE-BEFORE AND AFTER
LIBERALISATION
► Before liberalization Services was the residual sector
drawing refugees from agriculture
► The service sector's share finally rose from 43.69 per cent
in 1990-91 to 51.16 per cent in 1998-99.
► Service sector’s share in 2008-09 is 56%
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7 0
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3 0
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1 0
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IMPACT OF SERVICES SECTOR ON OTHER
MACROECONOMIC VARIABLES
(i) Whether the robust growth of the services sector has added a
dimension
Stability to India's GDP growth.
(ii) Whether there has been a growing complementarily between services
and
industrial sectors of the economy.
(iii) Whether the services sector also experienced 'jobless' growth like
other
commodity-producing sectors.
(iv) Whether high growth of services sector had any inflationary impact
on the economy.
(v) Whether the imposition of services tax has boosted the Government’s
effort at mobilizing more resources
SECTORAL GROWTH PERFORMANCE OF
INDIAN ECONOMY
Before understanding this first point let us see, the sectoral growth performance of
Indian Economy. There have been considerable increases in the service sector
during last two decades, and looking in the trend of last five years the GDP have
increased to 8%.
Three major service sectors that have seen
remarkable growth are communication,
transportation and financial services.
Indian scenario-Services and
inflation
► However, impact of US led recession which clicked from the sub prime crisis
would be partial and somewhat of short span on our economy.