New Delhi, July 22 (UNI) Contributing significantly to economic growth, India’s services sector now accounts for about 55% of the total size of the economy.
As per provisional estimates, the services sector is estimated to have grown by 7.6% in the financial year 2023-24.
The services sector continues to be a significant contributor to India’s growth, accounting for about 55 percent of the total size of the economy in FY24, as per Economic Survey 2023-24 tabled in Parliament by Finance Minister Nirmala Sitharaman on Monday.
The Survey said that the significant domestic demand, rapid urbanization, expansion of e-commerce platforms generated heightened requirements for logistics and digital related services are important factors which have determined the domestic demand of services.
The Economic Survey said that the contribution of the services sector to the overall Gross Value Added (GVA) has increased significantly in the last decade.
“Through the vicissitudes of the last three decades, the services sector stood as the bulwark of India’s economic growth. Aided by the focus on policy and procedural reforms, physical infrastructure and logistics, all significant business, personal, financial and infrastructure-based services have emerged strongly from the pandemic… However, the transformation lies in the fast-paced shift towards digital services like online payments, e-commerce, and entertainment platforms, as well as the increase in the demand for high-tech services as inputs in other productive activities,” the survey highlighted.
