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- Gross Value Added (GVA) in the services sector: The contribution of the services sector to the overall GVA has increased significantly in the last decade. The sector’s share dropped in FY21 due to the pandemic-induced contraction, but it recovered swiftly. The services sector witnessed a real growth rate of more than 6 per cent in all the years in the last decade except in the pandemic-affected FY21. Globally, India’s services exports constituted 4.4 per cent of the world’s commercial services exports in 2024. As per the Provisional Estimates, the services sector is estimated to have grown 7.6 per cent in FY24. Various high-frequency indicators support the services sector’s growth story.
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- Purchasing Managers’ Index (PMI)- Services: In FY24, India’s services sector showed remarkable resilience, with HSBC’s PMI peaking at 61.2 in March 2024, the highest in nearly 14 years. A value over 50 indicates expansion. This growth was fuelled by strong demand, efficiency improvements, and positive sales, sustaining expansion since August 2021.
- Trade in the services sector: In FY24, India’s services exports, making up 44% of total exports, grew 4.8% despite global trade weakening. Computer and business services led, while travel services surged 24.6%, but transportation receipts fell by 19.1%.
