Service sector outshines in FY10: CII

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Service sector outshines in FY10: CII
New Delhi, Apr 26: Riding on the back of stimulus packages provided by the government, the service sector outshone the rest in during the third and the last quarters of FY 10.

In a survey, the Confederation of Indian Industry (CII) found that services sector has revived from slowdown and has maintained higher growth trends during the said period.

"The services sector has performed better during Apr-Mar 2009-10 (Estimated) over Apr-Mar 2008-09 mainly on the back of the stimulus package provided by the government and continuance of the incentive measures including the 10 percent service tax in the recent Union Budget," said Mr Chandrajit Banerjee, Director General, CII in a statement.

The survey encompassed 51 sectors and was based on the responses of more than 350 service related industry associations, organizations and companies in both the private and public sectors.

Out of the sectors surveyed, 13.72 per cent of the sectors have recorded excellent growth of more than 20 per cent in Apr-Mar 2009-10 as against the 5.88 per cent of the sectors recorded to have excellent growth rate in Apr-Mar 2008-09.

The share of the high growth sectors surged 43.13 per cent in Apr-Mar 2009-10 versus 41.17 per cent in the year ago period.

The share of moderate growth rate sectors has increased from 35.29 pc to 41.17 pc while the share of sectors recording negative growth rate declined to 1.96 per cent from 17.65 per cent.

Indian Telecom and Mutual Fund industry are the biggest contributors in the growth of services industry, CII said, adding that the high growth category also includes sectors like air passenger traffic, retail trade, advertising, live entertainment, courier and logistics industry, healthcare, education and training services, and life insurance premium.

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