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Services Management

Notes
Figure 2.2: Share and Growth of Services Sector in 2009-10

Source: CSO
Notes Data in the case of Nagaland are for 2008-09.
Shares at current prices, growth rate of constant (2004-05) prices.

2.4.3 FDI in the Services Sector

FDI plays a major role in the dynamic growth of the services sector though the ambiguity in
classifying various activities under the services sector poses difficulty in the measurement of
FDI inflows into this sector. The combined FDI share of financial and non-financial services,
computer hardware and software, telecommunications, and housing and real estate can be taken
as a rough estimate of FDI share of services, though it could include some non-service elements.
This share is 41.9 per cent of the cumulative FDI equity inflows during the period April 2000-
December 2011. With the inclusion of the construction sector (6.5 per cent), the share of services
in FDI inflows increases to 48.4 per cent. If the shares of some other services or service-related
sectors like hotels and tourism (2.02 per cent), trading (1.94 per cent), information and
broadcasting (1.60 per cent), consultancy services (1.21 per cent), ports (1.04 per cent), agriculture
services (0.91 per cent), hospital and diagnostic centers (0.72 per cent), education (0.30 per cent),

Table 2.2: Services Attracting Highest FDI Equity Inflows

Source: Based on Department of Industrial Police & Promotion data.
Note: Figures in parentheses are US$ million

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