The growth of GDP goes only up to a 4.7%
The service sectors of India are facing severe deceleration as there has been only 4.7% of GDP growth in the year 2013-14. The second year has seen 5% growth. Compared to the previous year, there has been only a little growth in the service sector. This is also sharply lower than the 9% growth in an average out of the last ten years.
In the past two years, growth rates have been recorded by some of the important sectors of the economy such as hotels, communication, financing and construction. Between the years of 2004-05 and 2009-10, the service sector grew at more than 10%. This takes up more than two thirds of the Indian economy.
The last two years have been dreadful for the service sectors because the growth has been so low. The construction sector which happens to be the source of income for several daily wage earners and is also valuable for the cement and steel industries has increased up to 1.6% compared to 1.1% last year.
There is however a few silver linings. The finance, insurance, real estate and business have contributed enough than the overall growth of GDP in the previous year, although when it comes to size, it makes up only 20% of the economy.
Source: HT Correspondent, Hindustan Times
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