News: The Economic Survey 2019-2020 has said that the services sector’s significance in the Indian economy has continued to increase.
Contribution of Service Sector to the Indian Economy:
- 55% of the total size of the economy and GVA growth,
- Two-thirds of total FDI inflows into India
- 38% of total exports
Performance of India’s Key Services Sub-Sectors:
- Information Technology and Business Process Management (IT-BPM) Services: industry size reached about US$ 177 billion in March 2019. IT services constituted 51% of the IT-BPM sector
- Tourism: India ranked 22nd in the world in terms of international tourist arrivals in 2018 and accounts for 1.24% of the world’s international tourist arrivals
- Port and Shipping Services: The shipping turnaround time (a key indicator of the efficiency of the ports sector) at ports has almost halved from 4.67 days in 2010-11 to 2.48 days in 2018-19.
- Space Sector: India spent about US$ 1.5 billion on space programs in 2018