Comparison of growth and development of service sector in

India China and Brazil

Rishikesh Vasane – 21Tejas Khair – 07Rojin Mathew – 12Somil Parikh – 05Dhaval Tapiawala – 18Manish Shingh - 03

What is service Industry? This is the portion of the economy involved in the provision of services to other businesses as well as final

consumers.

This includes a wide range of businesses including financial institutions, schools, transports and restaurants. Also known as "tertiary sector of industry" or service industry/sector

Various sectors that combine together to constitute service

industry

•Trade •Hotels and Restaurants •Railways •Other Transport & Storage •Communication (Post,

Telecom) •Banking •Insurance

•Dwellings, Real Estate •Business Services •Public Administration Defense •Personal Services •Community Services •Other Services

Service Sector - History GDP Share of Service Sector

• China – 34% • India – 42% • Brazil – 48 %

19901990• China – 40%• India – 54%• Brazil – 59 %

20102010

GDP shares of service sector in India China and Brazil

Contribution of Industry to GDP in China

Service Industry

Mfg Industry

Agri Industry

Contribution of Industry to GDP India

2000 2010

Service Industry

Manufacturing

Agriculture

Contribution of Industry to GDP Brazil in year 2010

Employment Shares The employment share of India and Brazil’s service sector has grown very slowly according to available statistics covering the period of 1990-2010.

The employment share of China’s service sector has been growing steadily since 1990 -2010.

As a result, China’s service sector has fascinated relatively much more labour force than India and Brazil since the mid-1999s.

In terms of creating new jobs, services have played a vital role in these economies.

Employment Shares By Industry in India

Employment Shares By Industry in Brazil

Employment Shares By Industry in China

Growth of service Sector The structure of the service sector in India, China and Brazil are very similar.

It is still dominated by the traditional or old services, followed by business services (finance, insurance and real estate) and transport and communications.

The new service sectors are catching up rapidly During 1999-2003,

communication services achieved the strongest growth in these countries with a average annual rate of 23.89 % in India, 16.77 % in China 18% in Brazil.

•Output shares of the service sector in India, China and Brazil have grown steadily since 1996.

•The role of services in the Indian and Brazilin economy is clearly more significant than that of services in the Chinese economy.

•Since 1990, India and Brazil’s service sector has grown faster with an annual rate of 7.5 % and than the manufacturing sector with an annual rate of 6.0 %

Service Sector In India •India stands out for the size and dynamism of its services sector.

•The contribution of the services sector to the Indian economy is 55.2 per cent share in gross domestic product (GDP)

•Growing by 10 per cent annually, contributing to about a quarter of total employment, accounting for a high share in foreign direct investment (FDI) inflows and over one-third of total exports

•27.4 per cent export growth through the first half of 2010-11.

•In India, service sector has become a dominant contributor, such that the success in this regard has been called as ‘India’s services revolution’.

•The Indian economy is the second fastest major growing economy in the whole world with the growing rate of the GDP at 9.4% in 2006- 2007. The economy of India is the twelth biggest in the world for it has the GDP of US$ 1.09 trillion in 2007.

• Contribution of service sector in GDP has increased

• Foreign investors have shown interest in Indian export due to highly skilled, low cost and educated workers

• This has made sure that services provided by India are of best quality

• Foreign companies mainly started outsourcing business services from India such as business process outsourcing and Information technology

• which in its turn has made the sector contribute more to the India GDP

CONCLUSION •Role of services in these economies has been rising with China starting on a lower base.

•Growth has mainly been driven by increasing specialization of production, rising standard of living and accelerated urbanization in these societies.

•India’s service sector is the dominant contributor to GDP growth but employment absorption is not very high in this sector.

•China’s service sector is lagging behind.

•Brazil also doing good in Service Sector

Thank you