Economic Survey 2019-2020: service Sector in India

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News: The Economic Survey 2019-2020 has said that the services sector’s significance in the Indian economy has continued to increase.

Facts:

Key Facts:

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:

  1.  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
  2. 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
  3.  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.
  4. Space Sector: India spent about US$ 1.5 billion on space programs in 2018