Role of Service

7/28/2019 Role of Service

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ROLE OF

THEINDIANSERVICESECT

OR

Presented By :Abhishek Khandelwal (12PT1-03)

Ajay Giridharan (12PT1-06)

Archit Bhardwaj (12PT1-18)

Ashim Howlader (12PT1-19)

Charanjeet Singh (12PT1-21)

Manik Jhamb (12PT1-40)


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Service Sector

Public Private/ Corporate Household

Organized Un-organized

Services Classification


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Services in India

1. Trade, hotels and restaurants (THR)1.1 Trade

1.2 Hotels and restaurants

2. Transport, storage and communication

2.1 Railways

2.2 Transport by other means2.3 Storage

2.4 Communication

3. Financing, Insurance, Real Estate and Business

Services

3.1 Banking and Insurance

3.2 Real Estate, Ownership of Dwellings andBusiness Services

4. Community, Social and Personal services

4.1 Public Administration and defense (PA & D)

4.2 Other services

Source: Asian Productivity Organization (APO)Project No. 08-RP-38-GE-STM-B:


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Source: CSO

Services & GDPServices sector has outgrown both the

industry and agriculture sectors

Service sector growth rate (at constant

prices) has almost always been above overall

GDP growth rate

Pushes up the growth of the economy with a

great amount of stability

The share of services in Indias GDP at factor

cost (at current prices)

33.5% (1950s)to

55.1% (2010-11)

56.3% (2011-12) as per Advance Estimates (AE).

Including construction

63.3% (2010-11) 64.4% (2011-12)

Service growth rate:- 10.5 % (2009-2010)

- 09.3 % (2010-2011)

- 09.4 % (2011-12)-AE

Source: http://indiabudget.nic.in


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Services & GDP - Subsector

Top three contributors :- Trade, hotels, and restaurants (16.9 %)

- Financing, insurance, real estate, and business

services (19.4 %)- Community, social, and personal services (14.3 %)



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Services & FDICumulative share of FDI in :Combined financial and non-financial services,

computer hardware and software,telecommunications, and housing and real

estate: 41.9 %Construction sector: 6.50 %

Hotels and tourism : 2.02 %

Information and broadcasting : 1.60 %

Consultancy services: 1.21 %

Total FDI share: around 58%

Top Source countries of FDI in

service : Mauritius (39 %)

Singapore (15.4 %) UK (8.6%)

USA (7.1%)

Japan (4.5%)



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Services & FDI

Mauritius

Telecommunicati

ons

Services sector

that includes

both non-

financial and

financial

Singapore

Telecommunication

s

Transportation

industries

Services

Information

technology

UK

Information

technology

Telecommunications

which includes

services of radio

paging, basic

telephone, and cellularmobile

Service sector which

includes non- financial

and financial services

Source http://business.mapsofindia.com/fdi-india/investing-country/

USA

Telecommunications

which includes

services of basic

telephone, radio

paging, and cellular

mobile

Service sector whichincludes non- financial

and financial services

Electrical equipment

which includes

electronics and

computer software


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Real Estate Services

Estimates show that for every rupee that is invested inhousing and construction, 0.78 gets added to GDP

Housing ranks fourth in terms of the multiplier effect on the

economy and third amongst 14 major industries in terms oftotal linkage effect

The real estate industry has significant linkages (both directand indirect) with nearly 300 sectors like cement, steel,

paints, and building hardware which not only contribute tocapital formation and generation of employment andincome opportunities, but also catalyze and stimulateeconomic growth


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IT & ITeS

The IT-ITeS industry has four major sub-components: IT services,

business process outsourcing (BPO),

engineering services and

research and development (R&D), and software products.

Indias IT and BPO sector (excluding hardware) revenues were US$87.6 billion in 2011-12, generating direct employment for nearly2.8 million persons and indirect employment of around 8.9 million.

As a proportion of national GDP, IT and ITeS sector revenues havegrown from 1.2 per cent in 1997-8 to an estimated 7.5 per cent in2011-12.


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Overall Growth of the IT-ITES Sector


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R&D Services

Gross expenditure on R&D (GERD)

by India for 2012 was projected to

be US$ 41 billion in purchasing

power parity terms, which works

out to 0.8 per cent of GDP.


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Legal Services

Legal Practitioners (mostly unorganized) 6Lac (next only to USA)

913 Colleges, 14 National Law Schools

Legal system in India, USA & UK are rooted in British Common Law

Offshoring legal work to India saves about 80 per cent of the cost of MNCs

For further growth Legal & Judicial reforms

Advanced Legal Studies & Research Centers needed Quality Law Teachers needed

Skills, attitudes and ethics need improvement

National Litigation Policy to reduce avg pendency time from 15 yrs to 3 yrsand delays in courts


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Construction Services

Share of GDP 8.2%, Growth in 2010-11 -8%, 2011-12 4.8%

Creates investment opportunities and increases production capacity across various related sectors

Employment 33million people (direct + indirect)

Accounts for more than half the investment required for setting up critical infrastructure like Power Projects, Ports, Railways, Roads, Bridges

FDI up to 100% allowed in townships, housing, built-up infrastructure, and construction of developmentprojects (which include housing, commercial premises, educational institutions, and recreational facilities)

Govt plans to enhance infrastructure investment to 1Trillion $ in Twelfth Plan

Sector given industry status in year 2000.

Boost to PPP projects BOT, BOOT, BOLT

Tax Free Bonds, Infrastructure Debt Funds

Issues Rising Cement, Steel prices

Rising Interest Rates

Delays in National Projects - Freight Corridors, MRTS, Airports in Tier II, III cities, urban real estate development


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SWOT analysis

Strength

Highest contributor towards GDP (57 %) Highest employment generator(29 %)

Strong telecom & IT infra

4th largest railway network

Large pool of skilled mrg & tech expertise

Long coastline

Brand identity as knowledge economy

Weakness

Shifting population from primary & secondary Mechanization of agriculture not possible

Opportunity for uneducated /less educated

are very low

Service sector growth w/o primary &

secondary not sustainable

Opportunities

India rich in renewable energy resource

4th largest economy, hence preferred FDI

destination

Large size of middle class population

Mutual development of education & servicesector

Govt policy to support growth

Engg. Consultancy is experiencing boom

Threats

Growing regional variation (poverty, inra,

socio-economic) development

Mechanization not possible leading to

increasing cost

Present standard of service is not sufficientand sustainable


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ThankYou

Presented By :Abhishek Khandelwal (12PT1-03)

Ajay Giridharan (12PT1-06)

Archit Bhardwaj (12PT1-18)

Ashim Howlader (12PT1-19)

Charanjeet Singh (12PT1-21)

Manik Jhamb (12PT1-40)

Role of Service

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