Emerging Global Economic Situation: Opportunities and Policy Issues for Services Sector

Abstract

From Executive Summary and Conclusion: The services sector has been the major growth propeller of the Indian economy with the highest sectoral contribution in India’s Gross Domestic Product (GDP). However, in recent quarters, in line with general slowdown of the economy, the growth of services sector has also decelerated. Services export growth has also decelerated since 2011-12 and was at 3.4 per cent both in 2012-13 and HI of 2013-14. However ‘Net Services’ growth which decelerated to 1.4 per cent in 2012-13 picked up to 12.6 per cent in HI of 2013-14. This paper makes an attempt to analyze the recent performance services sector and list out some important policy issues in this sector.