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Comparison of growth and
development of service sector in
India China and Brazil
Rishikesh Vasane – 21
Tejas Khair – 07
Rojin Mathew – 12
Somil Parikh – 05
Dhaval Tapiawala – 18
Manish 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

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Final

  • 1. Comparison of growth and development of service sector in India China and Brazil
  • 2. Rishikesh Vasane – 21 Tejas Khair – 07 Rojin Mathew – 12 Somil Parikh – 05 Dhaval Tapiawala – 18 Manish Shingh - 03
  • 3. 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
  • 4. 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
  • 5. Service Sector - History GDP Share of Service Sector • China – 34% • India – 42% • Brazil – 48 % 19901990 • China – 40% • India – 54% • Brazil – 59 % 20102010
  • 6. GDP shares of service sector in India China and Brazil
  • 7. Contribution of Industry to GDP in China Service Industry Mfg Industry Agri Industry
  • 8. Contribution of Industry to GDP India 2000 2010 Service Industry Manufacturing Agriculture
  • 9. Contribution of Industry to GDP Brazil in year 2010
  • 10. 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.
  • 11. Employment Shares By Industry in India
  • 12. Employment Shares By Industry in Brazil
  • 13. Employment Shares By Industry in China
  • 14. 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.
  • 15. •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 %
  • 16. 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.
  • 17. •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.
  • 18. • 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
  • 19. 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.
  • 20. •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