08-01-2013, 02:06 PM
Indian Services Sector
Indian Services Sector.ppt (Size: 331.5 KB / Downloads: 27)
There is no doubt that India’s growth in the last decade has been service led
2005 UNCTAD Trade and Development report has included South Asia along with East Asia as the new growth pole due to the economic dynamism of
India in South Asia & China in East Asia.
Development theory identifies 3 stages of development
1st stage when the primary sector is the dominant sector in GDP
the second stage in which manufacturing is
dominant
the third stage in which the tertiary sector is dominant and is identified with countries in an advanced stage of development.
India’s growth experience does not seem to
follow this theory of stages as the high growth and high share of services sector which is a
feature of a developed economy has been attained by India even before reaching a developed
stage.
Services and Balance of Payments
Services trade has been acting as a cushion for India’s current Account of Balance of Payments helping in covering the trade deficit.
In today’s situation, where high Petroleum prices leading to high oil imports is a reality and high non-oil imports a necessity to sustain the high growth of exports and industrial production, the best possible way to have a positive current account balance or a
low current account deficit, is by boosting services exports.