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 international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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