Despite the global economic slowdown, India's services sector has shown some resilience with 12 of the 31 segments surveyed by FICCI recording a 'high' to 'excellent' growth rate ranging between 10 per cent to over 20 per cent during April-November 2008. In 2007-08, 26 segments of the services sector recorded this order of growth. Although the slowdown is expected to make a further dent in the growth of some segments of the services sector, given its overall contribution of 63 per cent to GDP, the services sector growth is expected to help maintain a healthy GDP growth this fiscal.
According to the FICCI Services Sector Survey, Wireless subscribers grew by 50 per cent in April-November 2008, compared with corresponding period of the previous year. In fiscal 2007-08, the growth was 58 per cent compared to the previous year. Internet subscribers grew by 26 per cent (20 per cent), and Broadband subscribers by 87.7 per cent (23.6 per cent).
Services that have seen a high growth of 10 per cent to 20 per cent in April-November 2008 are: railway revenue earning passenger traffic 12.2 per cent (14 per cent), revenue earning railway freight traffic15.7 per cent (14 per cent), franchising 10 per cent (25 per cent), exchange earnings from foreign tourists 16.5 per cent (14 per cent), housing finance 12 per cent (12 per cent), entertainment & media industry 10 per cent (16 per cent), IT/ Software/ Software Services 15 per cent (33 per cent) Organised Retail Trade 15 per cent (30 per cent), Education and Training Services 10 per cent (16 per cent).
Services contribute around 63 per cent to GDP which is well above the share of industry including manufacturing (19.5 per cent), and agriculture (17.8 per cent). During 2007-08, the services sector grew by 10.7 per cent over the previous year, which is higher than 8.8 per cent growth in manufacturing and 4.5 per cent growth in agriculture.
The services which have achieved a moderate growth of up to 10 per cent are: Goods transported by roads 9 per cent (11 per cent), railway freight traffic 6.5 per cent (9 per cent), railway passenger traffic 6.5 per cent (6 per cent), international air passenger traffic 7.2 per cent (12.4 per cent), air cargo 5.3 per cent (14 per cent), export cargo 7.7 per cent (7.5 per cent), import cargo 6.3 per cent (20 per cent), cargo handled at major ports 3.9 per cent (12 per cent), courier industry 8.5 per cent (15 per cent), logistics industry 8 per cent (15 per cent), retail trade 9 per cent (12 per cent), foreign tourists arrivals 8.2 per cent (12.2), construction 8 per cent (9 per cent).
The sectors that have recorded negative growth rates include: air passenger traffic (-) 4.7 per cent (20 per cent), domestic air passenger traffic (-) 8.5 per cent (22.5 per cent), fixed line subscriber (-) 3 per cent (-3.3 per cent), assets mobilised by mutual funds (-) 50 per cent (64 per cent) and assets under management (-) 26 per cent (50 per cent) and insurance premium (-) 2.7 per cent (23 per cent).
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