Importance Of Service Sector

CHAPTER-I (INTRODUCTION)

A. Overview of the service sector and its contribution in the economy

OVERVIEW:-

The services sector is not only the major sector in India’s GDP, but has also attracted foreign investment flows, contributed to exports as well as provided large-scale employment. India’s services sector covers a wide variety of activities such as trade, hotel and restaurants, transport, storage and communication, financing, banking, insurance, real estate.

• The services sector is the key driver of India’s economic growth. The sector contributed around 53.8 % of its Gross Value Added in 2015-2016 and employed 28.6 % of the total population. Net services exports from India grew 14.6% in the

It is noticed that Service sector has developed as one of the most important and the fastest-growing sector in the world economy in the past few decades, according to a research analysis on service sector in Indian economy. It also highlights reform measures that will enable the service sector to not only to grow at a faster pace but also to create quality employment and attract investment in the country. The study proves that service sector has grown at a higher rate in comparison to other sectors in the economy. Service sector’s growth rate is found to be higher than growth of overall GDP of India. The service sector is the 2nd largest employer where trade, hotels and restaurants and community, social and personal services are the significant generator of employment. So, service sector is a dominant part in terms of its growth for Indian

Service providers, commonly known as packers and movers provide services of packing and transportation. These services may or may not include unpacking, loading, unloading etc.

2. Cargo handling service is being provided with the main aim to include services of packing together with providing transportation of cargo or goods, with or without services like loading, unloading, unpacking. With this amendment, packing with transportation will be classifiable under cargo handling service only.

• Cargo handling and logistics is regarded as one of the most important part in the service sector, as it provides an efficient and a cost effective flow of goods on which other commercial sectors depend upon. Cargo handling and Logistic industry in India is evolving and expanding rapidly. Despite of the weak economic sentiments, the cargo handling services in the industry continues to witness growth due to the growth in retail, e-commerce and manufacturing sectors. The Global Logistics sector was expected to grow 10-15% in the period 2013-14. Logistics industry is expected to reach over USD 2 billion by 2019. Rise of e-commerce logistics and increased domestic consumption will lead the way for the industry in the coming years. With a promise of growth and improvements, the service oriented logistics industry is ready to expand beyond the horizons in the