At 10 percent growth, India is the fastest growing service economy: CII-KPMG Report

Even as the world economy is increasingly characterized as a service economy, India’s service sector has been growing the fastest globally at about 10 percent p.a. For long the growth in the service sector is considered as an indicator of country’s progress.The service sector in India now contributes 61 percent to the country’s GDP as mentioned in the report. 

According to a report tabled by CII-KPMG at Global Exhibition On Services (GES) on Wednesday, India’s services sector has reflected a 10 percent growth p.a. According to the same report titled ‘The Indian Services Sector: Poised for global ascendancy’, the Entertainment Industry is expected to grow at 14 percent p.a., the fastest within service sector in India. The largest employer in India – IT Industry is expected to grow by almost 8.5 percent. Tourism sector is expected to grow to $ 259 billion by 2025 and contribute 7.6 percent to the Indian GDP. This suggests approximately 136 percent increase over a 10 year period for tourism industry with revenues being at $109.6 billion during 2015. Report highlights extraordinary growth for the Healthcare industry in India. Healthcare contribution stands at 4.2 percent to the Indian GDP currently.

India’s share in global service exports stands at 3.2 per cent in 2014-15, which places India amongst the top 10 exporters of services in the world. India has the momentum in place as far as the macroeconomic indicators are concerned, and the report highlighting the service sector growth in India should cheer the policy makers and investors alike.