India is one of the fastest developing countries in Asia. The country is had an emerging services’ sector that attracts foreign investments, leading to more exports along with employment opportunities. Interestingly, India’s service sector supports a broad range of activities including hotel, restaurants, trade, transport, and communication.
Below are some of the interesting facts about India’s booming service sector:
- India stands as the hub of export for software services. The country has about 55% in the $182-190 billion global sourcing market. The country is developing significantly fast where medical tourism is increasing due to quality services at economical prices.
- Indian Government works actively to eliminate trade barriers to services and made a draft legal text about Trade Facilitation in Services
- A large number of talented and skilled labor belonging to IT and ITeS is available at significantly low cost. And, a rapidly growing youth population is seeking to migrate from agriculture to different sections
- The services sector in India has received the majority of FDI inflows during April 2000 and June of 2018 summing up to USD 68.62b
The India services’ sector serves as the key player in the economic growth of the country. The services sector has contributed about 55.65% of the country’s overall Gross Value added at price in the first quarter of 2018-19. The country has employed about 28.6% of the overall population. Also, you can learn about how to get an instant loan in India easily. The net service export remained at about USD 18.7b in the first quarter of 2018-19.
The Purchasing Manager Index (PMI) at Nikkei India Services remained at 51.5 in the mid of 2018. In the same month, corporate sentiments of different service providers were noted at the highest level.
Various development and prominent investments by different companies in the services area are as following:
- The earning from medical tourism will go beyond USD 9 billion by the end of 2020.
- The healthcare firms in India will form a merger with local and foreign countries deriving expansion and entering new markets
- The tourism expenditure in the country will increase to USD 216.9b by the end of 2018
Considering the rise in the tourism activities, the luggage business is growing more than ever. You can find case luggage discount codes and save a great amount of money.
The Indian government pays heed to the significance of growth in the area of services and offers great incentives in a broad variety of sectors including the education, tourism, health care, engineering, transportation, technology, banking, and more. The country aims to work towards trade assistance that will lead to sleek movement of professional. The country has taken the following initiatives:
- Upon reviewing the Foreign Trade Policy, the Central Government expanded incentives offered under Services Exports from India Scheme (SEIS) by 2%
- The Indian Government is working actively to withdraw the trade barriers on services and created a draft legal text last year
What to Expect in Future?
The services sector in India is controlled by global and domestic factors. The Indian facilities management market is expanding at about 17% CAGR during 2015 and 2020, exceeding the USD19b mark that was appraised by the expanding real estate and medical industries.
Interestingly, the Goods and Services Tax (GST) has built a national market and lowered the tax burden of different goods. Economists are expecting a reduction in cost in the near future due to the availability of GST input credit. It will lead to reduced services’ prices.
We have revealed why and how the services sector in India is booming. If you know about more facts, then feel free to mention them and add value to this article.