...Services Sector Growth Rate in India GDP Services Sector Growth Rate in India GDP. The Services Sector contributes the most to the Indian GDP. The Sector of Services in India has the biggest share in the country's GDP for it accounts for around 54% in 2009. The contribution of the Services Sector in India GDP has increased a lot in the last few years. The Services Sector contributed only 15% to the Indian GDP in 1950. Further the Indian Services Sector's share in the country's GDP has increased from 43.695 in 1990- 1991 to around 51.16% in 1998- 1999. This shows that the Services Sector in India accounts for over half of the country's GDP. The Reasons for the growth of the Services Sector contribution to the India GDP The contribution of the Services Sector has increased very rapidly in the India GDP for many foreign consumers have shown interest in the country's service exports. This is due to the fact that India has a large pool of highly skilled, low cost, and educated workers in the country. This has made sure that the services that are available in the country are of the best quality. The foreign companies seeing this have started outsourcing their work to India specially in the area of business services which includes business process outsourcing and information technology services. This has given a major boost to the Services Sector in India, which in its turn has made the sector contribute more to the India...
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...India’s GDP and Information Technology Group 5 – Div A Tejaswini Vaidya Mohit Mittal Harshul Trivedi Akshay Mohta Tomy Augustine Contents India’s GDP 3 IT and India 4 IT and its Contribution to GDP 4 Investments in the IT sector in India 5 Education & its impact on GDP 8 Conclusion 9 India’s GDP India’s GDP has grown steadily since 1991, after the Prime Minister Narasimha Rao initiated the economic liberalization of 1991. The reform reduced tariffs and interest rates, terminated public monopolies and allowed autocratic approval of FDI ( Foreign Direct Investments) in many sectors. Fig 1: India – Gross Domestic Product The GDP of India is essentially divided into three broad sectors. 1. Industry and Services: Accounts for 26.3% of the total GDP 2. Agriculture: 18.1% of the total GDP 3. Services: 56.6% of the GDP 4. Total Labor force: 487.6 million 5. Labor force in services: 34% ~ 165.5 million IT and India India gained recognition due to its IT and ITES sector. The ITES can be broadly classified into IT Services and BPO (Business processing outsourcing). The first software export zone setup in India was in Mumbai, the SEEPZ Park, in 1973. Significant growth has taken place since then in the IT Services sector and consequently the net contribution to the GDP has been growing ever since. India’s reputation as both as a source and a destination for skilled workforce helped improve its relations with a number of world economies...
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...output in the GDP reduced * Industrial Sector (Manufacturing Sector) increased due to industrialization in 1970's * Service sector in India saw a sharp increase from 1950-2012. The dominant shift in growth of the economy is accountable to service sector * Trade and tax liberalisation reforms were made in India in 1980 * Since modern services like information and financial services are easily tradable than manufactured goods, they are growing faster than traditional services like tourism, media, education, etc * Also, the services sectors have negligible transportation costs Inflexion Point Analysis: Analysing the trend since 1990, the inflexion points as per the graph below which depicts the NNP growth rate of the economy : 1997-98 * The growth slowed down because of the Asian crisis. During this period the fiscal deficit increased. Also the 5th pay commission was announced. * Contribution of Industrial and manufacturing sector towards growth rate reduced * Agricultural sector previously was low but it increased a bit in 1997 * However, the Service sector witnessed a regular increase in the growth patterns 1998-99 * GDP growth reached 5.8 percent. This is mainly due to high agricultural growth of 5.8 percent. It increased to 5.3 percent in1998-99. * Also the other major reason is due to increase in the GDP of trade sector which was estimated on the basis of volume of goods. * Contribution from Industrial sector reduced from...
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...Mada 2013 I. Background Sectorial Structures of World Economies According to World Bank, one way to determine the structure of economy is by analyzing its three main sectors; agriculture, industry, and services in the country’s total output and employment. Initially, the agriculture is the main sector of developing countries. The shift comes to industrialization and post-industrialization. Industrialization assumed to increase and replace the agriculture because modernization refers to specialization of economic function, monetization of transaction, and homogenization of goods and services (Venida, 2000). The homogenization is formed by the improvement and innovation in technology enhancing the agricultural products. As the requirement of productivity and quality in agriculture increases, the innovation and function of technology has become the obstacle of the growing industry. Source: World Bank (http://www.worldbank.org/depweb/beyond/beyondco/beg_09.pdf) As the income rises, goods become immaterial. People no longer rely on materials since needs are already satisfied. Instead, they will concern about services including health, education, entertainment, etc. Unfortunately, services sector tend to be less mechanization since services generally cannot be completed by machines. Therefore, the demand of service labors keep increasing. Developed country tend to be undergoing “post industrialization” which the country give less dependence to agriculture. This study is purposed...
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...EXC 9210 Introduction to International Economics Student Name: HE Yining Student Number: 25401696 Date of submission: 27/09/2013 Q1.Factors behind changes in demand of Auto industry in Australia There has been a steady decline in Australian's auto industry since the last decade. While there were five car companies residing in Australia previously, now there are only three left, which is Ford, Holden and Toyota, and Ford has announced their closure of manufacturing plant in 2016 (ABC, 2013). This steady decline in the industry is driven by the declining demand of Australian made cars. There are several reasons behind changes in demand for Australia cars in the recent years. One of the reasons commonly stated is the strong Australian dollar compared to other currencies. The higher dollar as opposed to other currencies made it that producing cars in Australia is relatively more expensive compared to other countries. The rising prices of Australian dollar can be seen at this table: Year | Quarter | Yen | US Dollar | Euro | Won | 2007 | March | 94 | 0.79 | 0.60 | 742 | | June | 101 | 0.83 | 0.62 | 773 | | September | 100 | 0.85 | 0.62 | 789 | | December | 101 | 0.90 | 0.61 | 825 | 2008 | March | 95 | 0.92 | 0.60 | 879 | | June | 100 | 0.95 | 0.61 | 975 | | September | 93 | 0.87 | 0.58 | 953 | | December | 63 | 0.67 | 0.51 | 893 | 2009 | March | 63 | 0.66 | 0.51 | 942 | | June | 75 | 0.78 | 0.56 | 988 | | September...
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...Contents Facts & figures.......................................................................................... 4 1 1.1 1.2 Consumer benefits for passengers and shippers ......................... 7 Consumer benefits ..................................................................................... 7 Estimated consumer benefits ..................................................................... 8 2 2.1 2.2 2.3 Enabling long-term economic growth............................................ 9 Connectivity and the cost of air transport services .................................... 9 How aviation enhances economic performance ...................................... 10 Connectivity and long-term growth .......................................................... 11 3 3.1 3.2 3.3 3.4 3.5 3.6 Economic footprint ........................................................................ 13 The aviation sector and its economic footprint ........................................ 13 The...
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...Mfula talks about differing forecasts of Zambia’s GDP growth in 2010, citing reasons why the GDP of Zambia forecasts a growth of 6.6% in 2010.This forecast is based on improving outputs of the mining, agriculture and tourism sectors. The article highlights that the previous forecast of 5.8% in June was as a result of sluggish global recovery. Furthermore previous forecasts of 7% were dismissed as a result of overall budget deficits resulting from increased spending on infrastructure and the social sector. Lastly the Finance minister reiterates that inflation rate forecasts still remain at 8% for 2010 and also explains that the strong kwacha (currency of Zambia) will help contain inflation. Zambia is a land locked English speaking Eastern African country which has Lusaka as its capital and shares borders with Malawi, D.R Congo Mozambique, Zimbabwe and Angola just to name a few. Zambia has a population of approximately 12.9 million spending the kwacha and enjoys a GDP per capita of $1144.3. Most citizens engage in agriculture for a livelihood. These agricultural products include maize, sunflower seeds; coffee, livestock and sorghum just to mention a few. Nevertheless, agriculture does not form a major percentage of Zambia’s exports. Zambia’s main exports include copper, tobacco, maize and cotton. Zambia also imports copper ores, petroleum oils, machinery and vehicles to enhance production and transport of goods and services. Zambia’s leading trade partners include China...
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...of economy – aspirations, health, and literacy – are all registering discernible improvements. Over two decades, India has implemented wide-ranging reforms that opened up the economy, dismantled the old licensing system and introduced competition into a number of sectors that had previously been dominated by public monopolies. Now, we live in a generation of relative abundance. While for the Western world it is going to be a demographic winter, we in India with some effort should be reaping a demo- graphic dividend. It is an India full of goodies –better consumption and lifestyle are in attendance all around. From the past two decades, we saw the twists in its growth and also twist in political atmosphere. With 27 per cent of the economy stagnant, it is no surprise that overall growth in India has slipped below 6 per cent. We are referring to the industrial sector, which has recorded an insipid 0.4 per cent growth in the first five months of this fiscal year beginning April 2013. It needs no emphasis that without a turnaround in this sector, a material lift to India's GDP growth is not possible. Industrial growth had slipped during the Lehman crisis as well, but that was largely explained by sharp contraction in the GDP growth rate across global economies for the first time since the World War II. 1.1-Introduction to the field of study Since 1991, India is moving towards higher achievement and it took...
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...SERVICE INDUSTRY IMPACT ON NATIONAL ECONOMIES Student’s Name Course code + name Professor’s name University City, State Date Introduction Service industry is a business category that involves the provision of services to other businesses or to final customers. Service industry has improved in the recent decades forming the backbone of several nations’ economies. The common service industries include tourism, computer services, entrepreneurship and accounting among many others. The growth of the service industry has been reflected in several economic platforms. For instance, the current list of Fortune 500 companies has more service companies on it compared to manufacturing companies (Encyclopedia Britannica, 2015). In addition, the old product oriented business tradition has been replaced by a service-product continuum. This business revolution is happening in both the developed and developing countries as a result of a high price elasticity of demand of services. This means that services have dominated the economies of these countries leading to an overall global economic change. Background of the Service Industry The service industry has been in the economy for a long period of time. In Africa, during the ages of barter trade, services still existed but they were not valued as they were termed as ‘free services’. For instance, during the barter trade age, there existed medicine people, traditional educators among other service providers (Gancarczyk, 2014). These people...
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...University of Lahore Islamabad Campus for giving me such kind of opportunities. Thank you Hooria Majid ABSTRACT Taxes affect citizens, economy of the country, businesses, governance mechanisms, etc. Not only revenue mobilization, an effective system of taxation helps in formalizing the economy, encourages economic growth, shapes political cohesion between tiers of the Government, and results in increase in social sector service delivery. We are now quite used to hearing the rhetoric by the government and bureaucracy on how Pakistan has one of the world’s lowest tax to GDP ratios since long (by their account it has stood between 9.50 and 10.40 percent in recent years), which also happens to be extremely low when compared to its neighboring countries and similar economies. So Government is unable to allocate reasonable funds for development projects. Although Pakistan has adopted best practices of the World through Income Tax Ordinance 2001 and formulation of Inland...
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...Service sector in China * Structures, restrictions and recommendations University: Shanghai University – School of Economics Course: Service economics and Trade Tutor: Professor Dong Yinguo Author: Hake Feka Student ID: 13D62241 Abstract The result of the market-oriented reforms in China along with its opening up to the outside world were rapid industrialization and integration in international trade. The service sector has perceived a fast, continued development and has made huge contributions to the overall economy in terms of its share of gross domestic product (GDP) and employment. However, the development of the service sector has been inadequate and has lagged behind its overall stage of development according to international norms. Table of Contents 1. INTRODUCTION 2 2. THE IMPACT OF SERVICE SECTOR IN CHINA 2 3. DIFFERENCES AND GAPS 4 4. OBSTACLES AND RESTRICTIONS 6 5. RECOMMANDATIONS AND CONCLUSION 10 REFERENCES 12 1. INTRODUCTION The result of the market-oriented reforms in China along with its opening up to the outside world were rapid industrialization and integration in international trade. The service sector has perceived a fast, continued development and has made huge contributions to the overall economy in terms of its share of gross domestic product (GDP) and employment. The increasing of the service sector has caught up with the manufacturing sector, which indicates that China is moving into a new stage of development...
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...Discuss the trend productivity in all sectors in Malaysia. In Malaysia, basically there are four main sectors which is the services sector, the manufacturing sector, the agriculture sector, and the construction sector. The Malaysia’s labor productivity as measured by real added value per employee in 2014 improved by 3.5% at RM61,708 from RM59,622 in 2013. The growth in productivity was a contributing factor to the higher growth in Gross Domestic Product (GDP) at 6.0%. Trend Productivity in Services Sector Labor productivity within the services sector grew at 2.2% to RM63,897 per employee in 2014, compared with RM62,492 per employee in 2013. Most sub-sectors recorded higher productivity growth, although declines were recorded in accommodation and food and beverage service activities, information and communication (ICT), financial and insurance/takaful activities and real estate and business services. Despite its key role as the largest contributor to GDP in the Malaysian economy, the services sector has much to do before it can become the primary driver of future job creation and productivity growth. At the international level, the productivity of Malaysia’s services sector lags far behind other countries. Apart from that, one of the challenges facing Malaysia’s services sector is that it has failed to successfully diversify into export-oriented sub-sectors such as financial and ICT services. Trend Productivity in Manufacturing Sector As the country progresses towards becoming...
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... History GSDP at Constant Prices Comparison of Bihar‟s GSDP with other states Composition of Various sectors Annual Growth Rate Comparison between 2004-07 and 2008-11 Summary Bihar as a political entity, either as a kingdom, or as a state within the republic of India, has its own identity from the time written records were available. Noted historian, Romila Thapar, describes the history of ancient India as the history of ancient Bihar. Many achievements that India became renowned for, in education, governance, society, or religion, have their roots in Bihar. Significant achievements of Bihar in trade and economic engagement within the state and outside of the Indian sub-continent emerge from a past that appears to have left no living legacy in today‟s Bihar DURING 2005-2006: Growth rate of GSDP was minimum(.94%) Rabri devi departed out of CM house Bihar came under presidential rule In november,nda rule started with nitish kumar as CM This shift of govt. subdued or depressed the GDP DURING 2006-2007: Drastic increase of GSDP from .94% to 18.13% Nitish kumar govt. came out with many social reforms: Bihar‟s single window clearance act Infrastructure development enabling act New industrial policy Price preference policy New policy initiatives for entertainment, tea processing, sugar sectors Introduction of NREGAs Simplification of VAT regime DURING 2007-2008: GSDP fell down to 8.48%(around 10%fall...
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...Technology Enabled Services (IT-ITES) industry has been contributing its role in the economic development of India since post liberalization era. The pace growth of this industry is considered as a growth driver for the economy. India has become as “IT Super Power”. The performance of IT industry can be revealed with the evidence of its contribution to the GDP (Gross Domestic Product) of the country, provision of employment opportunities all over the country, IT services and software exports and revenue to the country. This paper examines how does the IT industry is playing its predominant role in Indian economy with its various trends in the contribution to the GDP of India , IT exports, IT revenue trends and employment opportunities. Keywords - IT-ITES, Contribution to GDP, Employment, Exports and Revenue. I. utilities and services for globally oriented businesses. The SEZ Act 2005 envisages key role for the State Governments in Export Promotion and creation of related infrastructure. A few salient features of SEZ scheme are as under: INTRODUCTION The Government of India has identified IT industry as one of the major industries in India and it plays an important role in achieving the policy objectives like economic development. Top companies like Microsoft, IBM, Motorola Oracle, Dell, Nokia, Google, Sathyam, Infosis and Wipro set up their operations. Information Technology has made the information access at gigabit speed. Internet services have made the...
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...research highlighted a direct link between the significance of service industry and economic growth performance based on US and European data (Bart et al., 2008). Attributable to, however, limited availability of service industry company level data particularly that on economies of scale, policy making in order to increase service industry output rely on previous studies and observation of cumulative global data (Morikawa, 2011). Attributable to the sovereign debt crisis, the quantity and quality of available resources and innovations has undergone serious deformation, which is measured by increased job losses, unemployment, and decreased number of investments. Consumption declined and governments applied various actions to stimulate the economic growth. The three main Industries have been facing tough times and responded differently, whilst these times the service industry has not only been resilient, but also has gone under transformation regarding its structure (Breyers, 2011). The intent in this paper is to underscore the importacy of service industry and prove the following hypothesis: ,,The service industry dominates the national economies of the developed countries.’’ At the first place in order to demonstrate briefly industrialization and post industrialization, the expansion of the service industry with economic growth is outlined. Moreover, this section addresses the problem of expansion of service industry for the long run. Secondly, to support the...
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