India hopes to drive broader growth in services sector

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India has the second fastest growing services sector, after China, in Asia. The sector is growing at about 9 percent per year, outperforming GDP growth in the last 13 years.

India has the second fastest growing services sector, after China, in Asia. The sector is growing at about 9 percent per year, outperforming GDP growth in the last 13 years. That has prompted the government to foster development in areas like education, health and tourism in a bid to drive broader growth.

India’s services sector accounts for 57 percent of the country’s GDP. Annually, India exports US$151 billion worth of services. But, it exports twice as much merchandise. Now, the government wants to re-balance that growth, by moving up the export value chain.

Finance Minister Arun Jaitley said: “The real job creation is in manufacturing sector and that’s why one of our national challenges is this 15 percent of share of manufacturing today has to be increased by 25 percent, and that’s an uphill task. Therefore that leaves us essentially with the services sector whose growth is a low-hanging fruit in India.”

India hopes to bank on high-tech sectors, like animation, gaming and designing. But it needs to build a competitive talent pool and a skills development programme.

Minister of State for Commerce & Industry, Nirmala Sitaraman, said: “Whether it’s film, entertainment, hospitality, wellness…professional services and so on, all of which have on their own – with probably minimum assistance from the government – shown excellence over the decades.

“They have striven over the decades and established such quality which has given them excellence in international recognition. Most of them are accredited all over the world. So at this stage – where it is already contributing substantially to the GDP – we also recognize untapped potential existing within this sector.”

Analysts said one area with strong potential is tourism. With nine million foreigners expected to visit India each year by 2020, the government is hoping this will boost consumer spending and foster job creation at home.

 

 

Source : Channel News Asia | November 18, 2014

Thomas D’Innocenzi

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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