Home India News Northeastern states lead service sector growth

Northeastern states lead service sector growth

By IANS,

New Delhi : Northeastern states like Arunachal Pradesh and Sikkim led India’s service sector growth in 2009-10, with rates of more than 30 percent, according to the Economic Survey 2011-12 tabled in parliament Thursday.

The survey tabled by Finance Minister Pranab Mukherjee showed most northeastern states and states like Bihar registered higher than national average growth in the services sector.

“Services revolution in India seems to be becoming more broadbased, with even the hitherto backward states piggy-backing on the good performance of this sector to go up the escalator of progress,” it said.

The highest growth rate in the services sector was recorded in Arunachal Pradesh at 34.9 percent, while in Sikkim growth was recorded at 30.1 percent.

The services sector in Bihar grew by 16.6 percent in 2009-10 against the national average of 10.5 percent.

States and union territories like Tripura, Nagaland, West Bengal, Mizoram, Maharashtra, Tamil Nadu, Kerala, Delhi and Chandigarh also had higher than the average national growth.

The growth in services has been much above the overall GDP growth in India for the last 15 years.

The services sector is estimated to grow by 9.4 percent in the current financial year ending March 31 against the overall projected GDP growth of 6.9 percent.

The services sector grew by 9.3 percent in 2010-11. However, the latest statewise growth data is available only till 2009-10.

The survey says the share of services in India’s GDP has increased from 33.5 percent in 1950-51 to 55.1 percent in 2010-11 and to 56.3 percent in 2011-12. If construction is included, the share increased to 64.4 percent in 2011-12.