The services sector in India has seen rapid growth in the last two decades, making India the second fastest growing services economy in the world.
From an agrarian economy in the 1980s, India has transformed itself into a services-driven economy, which contributes to approximately 61% of India’s GDP. With this scale and growth, this sector is strategically important to the country.
The World Bank has found that the sector’s contribution in poverty alleviation is greater than that of agriculture and manufacturing. The CII-KPMG ‘The Indian services sector: Poised for global ascendancy’ report launched today at the second edition of Global Exhibition on Services (GES) highlights that in the year 2014-15, the sector contributed about 61 per cent to India’s GDP, growing strongly at approximately 10 per cent per annum, making India the second fastest growing services economy in the world. India’s share in global services exports was 3.2 per cent in 2014-15, double that of its merchandise exports in global merchandise exports at 1.7 per cent, placing India in the eighth place currently amongst the top ten exporters of service in the world.