Service SME Sector in India — Statistics, Trends, Reports Ever since the onset of the financial crisis, the global economy has been struggling to revive itself and achieve a healthy growth rate. The global growth rate for last year and this year are projected at 3. Department of Commerce, Govt. Leave this field empty if you're human:
Developed in conjunction with Joomla extensions. The role of financial sector in shaping fortunes for Indian economy has been even more critical, as India since independence lacked prowess of a resilient industrial sector. This prompted India to depend on other sectors for its sustenance.
It is the dynamic growth of financial services sector during post reform age that has helped it in assuming such an important place in Indian economy. Unlike in past when financial services sector mainly constituted of banking sector, today financial sector has broaden its reach to include sectors like insurance services, non-banking financial services, co-operatives, pension funds, mutual funds, capital market etc.
Especially employment generated by banking and insurance sector every year runs in millions. Equally revenue generation through tax and dividend collection by the government surpasses billions of rupees every year.
While revenue and employment generation are two very important contributions, successfully maintaining healthy credit line to industrial sector as well as to overall economy is another important contribution of financial sector.
With improved availability of credit, the Indian economy during past two decades has managed to march towards higher economic growth. Reforms within banking sector during post liberalization era have especially proven to be prudent for credit disbursement in the country. The advent of private sector banks in particular opened a new chapter for Indian economy.
The enormous success of private sector banks helped large corporate paving the way for consolidated growth in industrial sector encompassing MSME. Recent important reforms have made financial sector even robust Over past few years government has taken many reformative steps to make financial sector even more robust.
Although it will take quite a few years to see positive impact of these reforms, there is a general consensus that these reforms will rewrite a chapter in Indian economy.
More specifically, these reforms will open new stream of revenue and employment generation for the economy. It awarded payment bank licenses to 11 entities. Along with redefining consumer experience, these 11 payment banks are expected to give further boost to growth of financial sector as well as to overall Indian economy.
This means banks no longer have to meet cash reserve ratio, statutory liquidity ratio or priority sector norms to disburse credit for big infrastructure projects.
Thereby making way for more foreign direct investment in insurance as well as financial sector. Road ahead for financial sector With the above mentioned reforms, road ahead for financial sector indeed looks very bright.
More so for banking and insurance sector the two most important parts of financial sectors. The report also states that bank credit is expected to grow at a compound annual growth rate of 17 per cent in coming years.
The road ahead for other sectors like pension funds, mutual sector, non-banking financial etc looks equally very promising.
In the midst of all these bright projection, there is a growing concern about increasing NPAs in banking sector.The figures are based on nominal GDP and GDP (PPP) estimates and sector composition ratios provided by the CIA World Factbook at market or government official exchange rates with figures in trillions of United States dollars.
India is an attractive hub for foreign investments in the manufacturing sector.
Several mobile phone, luxury and automobile brands, among others, have set up or are looking to establish their manufacturing bases in the country. At the time of Indian independence this sector had biggest share in the Gross Domestic Product of India.
But year by year its contribution goes on declining and currently it .
This article is explaining the contribution of service sector, industrial sector and agriculture sector in the Indian economy in FY Services sector is the largest sector of India.
With the potential to become the fifth largest banking industry in the world by and third largest by , India’s banking and financial sector is expanding rapidly.
The Indian Banking industry is currently worth Rs. 81 trillion (US $ trillion). The economy of India is a developing mixed economy. It is the world's sixth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP). The country ranks th in per capita GDP (nominal) with $2, and nd in per capita GDP (PPP) with $7, as of After the economic liberalisation, India achieved % average GDP growth annually.