Introduction
• Service Sector in India today accounts for more
than half of India's GDP.
• In the financial year 2008-2009, the share of
services, industry, and agriculture in India's GDP
is 53.7 per cent, 29.1 per cent, and 17.2 per
cent respectively.
• India ranks fifteenth in the services output and
it provides employment to around 23% of the
total workforce in the country.
Various service sectors in India
• Trade
• Hotels and Restaurants
• Railways , other transport & storage
• Communication (Post, Telecom)
• Banking & Insurance
• Dwellings, Real Estate
• Business Services
• Public Administration; Defence
• Personal Services
• Community Services
The Reasons for the growth of the Services
Sector contribution to the India GDP
• Many foreign consumers have shown interest
in the country's service exports.
• Large pool of highly skilled, low cost, and
educated workers in the country.
• The foreign companies seeing this have
started outsourcing their work to India.
• This has given a major boost to the Services
Sector in India, which in its turn has made the
sector contribute more to the India GDP.
Tourism & Hospitality
Introduction
• India’s travel & tourism industry is expected to
generate approx. US$ 100bn in ’09, growing at
7.3% & rising to US$275.5 by 2018.
• Forex earnings from tourism in India rose from
US$ 3 bn in ‘02 to 11.96 bn in ‘08.
• Tourism is expected to contribute around 6.1%
to national GDP & provides employment to
over 41 mn people.
Inbound & outbound tourists
• Inbound tourists arrival has increased from
0.46% in’04 to 0.67% in ’08.
• Forex earnings grew at a much faster rate at
28.9% in’07 against 20% in’08.
• India accounts for 0.5%(4.5mn) of global tourists,
whereas outbound tourists are over 8.5mn.
• Outbound tourists market has been growing at
an annual growth rate of 25%.
Medical Tourism
• India is aggressively promoting the concept of
medical tourism & capitalizing on its low cost &
highly trained doctors.
• The country also has some of the best hospitals
that are highly equipped & provide services at a
fraction of costs.
• Estimated earnings of US$1.86bn by 2012 at a
growth rate of 8.8%.
• Current earnings being US $821.40mn.
HOSPITALITY
• Country’s hospitality sector has witnessed an
increase in the occupancy ratios & avg room
rates.
• With the occupancy ratio of around 75-80%
the avg increase in room rates hover around
22-25%.
• Estimated 10mn foreign visitors by 2010
thereby creating a demand for 100000 rooms
approx.
• Estimated around 40 international hotel
brands by 2011.
International
Recognition
REAL ESTATE
• The Indian economy is steadily moving forward on
its path to prosperity, with economic development
being the focal point of the progress.
• Today India is seen as a prime destination for
investment by overseas investors across the board.
• India’s favorable demographic and economic
scenario makes it an attractive destination for the
real estate investors.
• Real estate sector has been deregulated and
liberalized and is growing at a rate of 30% and
has emerged as one of the most appealing
investment areas for domestic as well as foreign
investors.
• It is the second largest employing sector in India
and is linked to about 250 ancillary industries
like cement, brick and steel.
• A unit increase in this sector has a multiplier
effect and the capacity to generate income as
high as five times.
KEY GROWTH DRIVERS
• Growth of India’s middle class, creating
demand for housing.
• India has second largest population in world
• Increasing FDI in this sector
• Easy availability of finance
• Expansion of organized retail sector
• Availability of home loans at competitive rates
• Rising income
TOP PLAYERS
• UNITECH
• HIRANANDANI
• DLF
• ANSAL GROUP
• RAHEJAS
GOVERNMENT INITIATIVES
• 100% FDI allowed in this sector
• Minimum capital investment for wholly owned
subsidiaries and JVS stand at us$ 10 million
and us$ 25 million respectively.
• Full repatriation of original investment after 3
years.
• Government has allowed FDI in retailing with
51% participation.
GOING GLOBAL
• Embassy Group has linked a deal with the Serbian
government to construct a us$ 600 million IT park in
Serbia.
• Parsvanath Developers has tied up with the Al-Hasan
Group in Oman.
• The Hiranandani’s are constructing 5000 5star hotel
rooms, which will come up between Abu Dhani and
Dubai.
• Kolkata’s South City Project is working on 2 projects in
Dubai.
ALL-ROUND DEVELOPMENT
• There will be demand for over 24.3 million new
dwellings in urban India alone by 2015.
• An estimated us$ 25 billion investment will be
required over the next 5 years in urban housing.
• The real estate sector has grown at an
increasing rate of about 30% and is expected to
continue growing at 25% for the next 3 to 4
years.
• Year 2007 saw the sector clocking $48 billion,
which is expected to reach $140 billion by
2012- projecting a growth of 21% per annum.
• The sector is currently on a high- mainly
because the high economic growth, shortage
of residential spaces, growth in Ites and retail.
• The focus though would now shift more
towards smaller cities, since the metros are
getting saturated.
