India Services Sector
A multi-trillion dollar opportunity for global symbiotic growth
India has the fastest growing (9.2 percent in 2015-16) service sector in the world with the lowest share of services employment (28 percent in 2014), contributing about 66 percent to the Indian GDP. The government is taking aggressive steps to increase India’s commercial services exports share in the global services market (from 3.3 percent in 2015), and to enable multi-fold growth in the GDP ($2.3 trillion in 2016). In addition, not only 34 percent of the manufacturing jobs are service-type functions but also a dollar’s worth of final demand for manufacturers generates $1.48 in other services and production. This further increases the importance of services in the economy and job creation.
India’s distinctive competencies and competitive advantage formed by the knowledge-based services makes it unique emerging market in the world. Backed by several government initiatives, the services sector in India has the potential to unlock a multi-trillion dollar opportunity which can create symbiotic growth for all nations.
Deloitte India has worked with the Confederation of Indian Industry on a publication highlighting and introducing the opportunities in various services sectors in India. This publication provides the industry profile of key services sectors, such as IT, telecom, media and entertainment, health care, banking and financial services, retail, railways, environment, energy, logistics, exhibition and events, facility, education, space, skills, start-ups, and sports. The publication in particular highlights the focus of each sector on various government initiatives—Skill India, Digital India, Start-up India, and Make in India. It also focusses and delves into special areas such as cyber security, trade facilitation, and start-ups/SMEs in services sectors.