New Delhi: The growth momentum in the services sector has been well maintained, accounting for over 55 per cent of the economy even though industry grew at a pace of 88.7 per cent since 1999-2000.
“Services contributed as much as 68.6 per cent of the overall average growth in GDP in the last five years between 2002-03 and 2006-07. The share of services improved to 55.1 per cent,” said the Economic Survey for 2006-07 that was presented in Parliament on Tuesday.
The growth in this sector has been broad-based with three sub-sectors – trade, hotels, transport and communication services. These sub-sectors have helped in boosting the sector by growing at double-digit rates for four consecutive years.
Impressive growth in IT and ITeS services, rail and road traffic and fast additions to the existing stock of telephone connections, particularly mobile, played a key role in such growth, the Survey said.
Financial services like banking, insurance, real estate and business services also grew at a strong 11.1 per cent in 2006-07.
After a slow growth of 5.6 per cent in 2003-04, this sub-sector bounced back in the last two years. The realty boom, too, supplemented it.
Tourism, which is part of services, also saw impressive growth. IT-enabled services and the BPO industry grew substantially, with Indian companies expanding their service offerings.
There was also growth in the telecom sector with India emerging as the world's fastest growing telecom market.
(With agency inputs)
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