Page 43 - DMGT522_SERVICES MANAGEMENT

Services Management

Notes trade, hotels, and restaurants; and public administration, education, and community services
are the three major employment-providing services sectors in different states. In urban India the
shares of employment in services is very high in most of the states (Table 2.3).
Table 2.3: State-wise employment in different sectors in rural and urban India in 2009-10

2.4.6 India’s Services Data

In last year’s Economic Survey, the weaknesses related to availability and quality of services
data was highlighted. To reiterate, these are difficulties in compilation of an index of services
sector production, non-representation of many service sectors in the calculation of the wholesale
price index, limited availability of published data on pricing of services, and limited data on
trade in services. Even where data are available, they suffer from deficiencies related to definition,
method of collection, suitability for pricing, and construction of indices. The recent efforts in
streamlining data in the services sector, though welcome, need to be accelerated in a coordinated
manner with the help of experts in the field.

2.4.7 Performance of Services Sub-sectors

India’s services sector excluding construction and including construction grew by 9.3 and 9.2 per
cent respectively in 2010-11 and by 9.4 and 8.8 per cent respectively in 2011-12, as per the CSO’s
AE. This is nearly 2 percentage points higher than the overall growth rate in 2011-12. Broad
category-wise, the ‘trade, hotels and restaurants, transport, storage and communications’ category
had the highest growth at 11.2 per cent, followed by ‘financing, insurance, real estate, and
business services’ at 9.1 per cent in 2011-12. ‘Trade’ and ‘Real estate, ownership of dwellings, and
business services’ are two major sub-sectors with shares of 15.4 per cent and 10.6 per cent of GDP
respectively in 2010-11. The shares of the two sectors have been more or less stable over the
years. In 2010-11, the growth of the former has been good at 9.1 per cent and the latter moderate
at 6.9 per cent. Communications followed by banking and insurance are the fastest growing
sub-sectors over the years with 27.2 per cent and 14.5 per cent growth respectively in 2010-11
(Table 2.4).

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