India’s service sector continues to contribute to GDP, accounting for 55% in FY24: The fiscal year (FY) 2024 finished with an outstanding services sector credit of Rs 45.9 lakh crore in March 2024, representing a 22.9 percent year-on-year (YoY) growth, according to the Economic Survey released on Monday.
The post-pandemic services exports have maintained a steady momentum, accounting for 44% of India’s overall exports in FY24, according to the survey. India placed sixth in terms of service exports among other countries. The paper mentioned the European Union (excluding intra-EU trade), the United States, the United Kingdom, and China.
Since August 2021, the services Purchasing Managers’ Index (PMI) has remained above 50, indicating that the economy has been expanding steadily for the past 35 months. According to the economic survey paper, the services PMI increased to 61.2 in March 2024, representing one of the sector’s most significant sales and business activity expansions in nearly 14 years. The service sector in India continues to contribute considerably to the country’s growth, accounting for around 55% of the entire size of the economy in fiscal year (FY) 24, according to the Economic Survey.
The services sector continues to establish new milestones, showcasing India’s worldwide leadership in digital payments. According to a recent SBI research, services sales, particularly in overseas markets, grew strongly, bolstered by strong domestic demand and low inflation.
According to the Economic Survey, the government has played an important role in boosting India’s service growth and competitiveness by establishing an enabling environment, encouraging investment, improving skills, and facilitating market access. The services sector’s contribution to the overall GVA has grown dramatically over the last decade. Globally, India’s services sector grew by more than 6%, with services exports accounting for 4.4% of total commercial service exports in 2022.
India’s services exports accounted for 4.4% of the world’s commercial services exports in 2022. Post-pandemic, service exports have maintained a steady pace, accounting for 44% of India’s overall exports in FY24. “Through the vicissitudes of the last three decades, the services sector has served as the pillar of India’s economic progress.
All key business, personal, financial, and infrastructure-based services have recovered strongly from the epidemic, thanks to a focus on policy and procedural reforms, physical infrastructure, and logistics. However, the transformation is characterized by a rapid move toward digital services such as online payments, e-commerce, and entertainment platforms, as well as an increase in demand for high-tech services as inputs in other productive activities, according to the Economic Survey 2023-2024.
On Monday, Smt. Nirmala Sitharaman, Union Minister for Finance and Corporate Affairs, tabled the Economic Survey 2023-2024 in Parliament. (ANI)