SERVICE SECTOR

Feb. 1, 2020

According to the Economic Survey 2019-20, Services Sector is growing in its significance.

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The Services Sector accounted for about 55 percent of the economy and Gross Value Added (GVA) growth, two-thirds of total FDI inflows into India and about 38 percent of the total exports.
The sector’s share now exceeds 50 per cent of the Gross State Value Added in 15 out of the 33 states and UTs.
The services sector saw a 33 per cent jump in the gross FDI equity inflows during April – September 2019, touching US$ 17.58 billion.
Services exports have outperformed goods exports in the recent years, due to which India’s share in world’s commercial services exports has reached 3.5 per cent in 2018, twice the share in world’s merchandise exports at 1.7 percent.
Foreign tourist arrivals to India on e-visas have increased from 4.45 lakh in 2015 to 23.69 lakh in 2018 and stood at 21.75 lakh in January-October 2019, recording nearly 21 per cent year-on-year growth.
The turnaround time of ships, which is a key indicator of efficiency of the ports sector, has been on a continuous decline, almost halving between 2010-11 and 2018-19, from 4.67 days to 2.48 days.