Significant growth in Indian service sector: FICCI

NI Wire

New Delhi

Mon, 29 Dec 2008: 

The global financial turmoil is now worsening the Indian economy after October this year; however, service sector has shown moderation in growth figure between April and November, according to the FICCI Services Sector Survey.

Despite economic slowdown, 12 out of 31 service segments have registered &lsquhigh’ to ‘excellent’ growth rate ranging between 10% to over 20% during the said period, added FICCI.

The strong contribution of ‘these’ service segments have helped India to maintain a healthy growth rate as service sectors contributes 63% in Gross Domestic Product (GDP) of India, informed FICCI.

Indian Telecom sector emerged as the biggest contributor by marking a significant growth rate in broadband, mobile and Internet subscription services. The broadband subscription grew up by 87% as against last year’s 23.6%; the mobile subscription increased by 50% as against previous fiscal’s 58%, while internet subscription registered a growth figure of 26% in comparison to previous year’s 20%.

Among other major achievers, Indian Railways, IT software services, organised retail trades, franchising, forex earnings through tourists, education, housing finance, and media & entertainment sectors have also registered 10 to 20% growth rate.

Indian Railways, the biggest revenue earners among these, have recorded 12.2% growth in passenger traffic (as against 14% last year) while revenue through freight has increased to 15.7% as against 14% in the last fiscal.

IT software services have also shown moderation in growth but managed to grow with positive figures by marking a growth rate of 15 per cent while it was 33% growth rate in the last fiscal.

Besides, Forex earnings from tourist grew by 16%, housing finance by 12%, organised retail trade by 15% and entertainment & media industry by 10%. The cargo services through road, rail and port have registered a single digit growth, reported FICCI.

Meanwhile, sectors like airlines, insurance, mutual fund, and fixed line subscriber have witnessed sharp decline. A large number of fixed phone connections have been disconnected this year due to massive growth rate in mobile phone consumers.