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debakshi gupta
CRM and English Skills expert
Asked a question 9 months ago

What is the contribution of service sector in india’s economy?

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debakshi gupta
CRM and English Skills expert

As per reports, The services sector accounts for 53.66% of total India's GVA of Rs. 137.51 lakh crore. The industrial sector is at the second spot and contributing around 31% of the Indian GDP. The agriculture sector is at the third spot and contributing around 16% of the Indian GDP.

Service sector is therefore a crucial part contributing highest among all the sectors.

The services sector is a key driver of India’s economic growth. The sector contributed 55.39 per cent to India’s Gross Value Added at current price in FY20*. Services sector’s GVA grew at a CAGR of 1.45 per cent to US$ 1,064.8 billion in FY20 from US$ 1,005 billion in FY16. Net export estimate in FY20 from services stood at US$ 214.14 billion, while import was at US$ 131.41 billion in FY20.

Nikkei India Services Purchasing Managers' Index (PMI) stood at 14.6 in May 2020, indicating a contraction as COVID-19 led shutdown impaired businesses.