ASSIGNMENT OF SERVICES MARKETING

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MBA GENERAL,3 SEM

PREPARED BY ROLL NO SECTION -

PULKIT GUPTA 06516603911

- GH

Ques)

role of services in Indian economy?

India stands out for the size and dynamism of its services sector. The contribution of the services sector to the Indian economy has been manifold: a 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, and recording very fast (27.4 per cent) export growth through the first half of 2010-11. 10.5 The share of services in Indias GDP at factor cost (at current prices) increased rapidly: from 30.5 per cent in 1950-51 to 55.2 per cent in 2009-10. If construction is also included, then the share increases to 63.4 per cent in 2009-10. The ratcheting up of the overall growth rate (compound annual growth rate [CAGR]) of the Indian economy from 5.7 per cent in the 1990s to 8.6 per cent during the period 2004-05 to 2009-10was to a large measure due to the acceleration of the growth rate (CAGR) in the services sector from7.5 per cent in the 1990s to 10.3 per cent in 200405 to 2009-10. The services sector growth was significantly faster than the 6.6 per cent for the combined agriculture and industry sectors annual output growth during the same period. In 2009-10, services growth was 10.1 per cent and in 2010-11State-wise growth of GSDP is also closely associated with faster growth of the tertiary sector. Interestingly, Bihar which has the highest overall growth rate in 2008-09 also has the fastest growth among States in services, in part due to its rapid progress from a low base (only Goas growth rate in services is higher than that of Bihar, but this is for 2007-08). Even small States such as Chhattisgarh and relatively low-income States such as Orissa and Rajasthan which have relatively low overall growth rates have started piggybacking on the good performance of their services sectors to climb up the ladder of progress. Thus, the services revolution in India seems to be becoming broader based rather than being concentrated in only a few States. India is also moving towards a services-led export growth. During 2004-05 to 2008-09 as per the Balance of Payments data, merchandise and services exports grew by 22.2 and 25.3 per cent respectively. Services growth slowed in 2009-10 as a result of the global recession, but the decline was less pronounced than the slowdown in merchandise export growth, and has recovered rapidly in the first half of 2010-11 with a growth of 27.4 per cent. The overall openness of the economy reflected by

total trade including services as a percentage of GDP shows a remarkable increase from 29.2 per cent in2000-01 to 53.9 per cent in 2008-09, though it dipped to 46.1 per cent in 2009-10 due to the global crisis .The dip was more due to fall in share of merchandise trade to GDP to 35 per cent in 2009-10 compared to 41 per cent in 2008-09. The fall in the share of services trade to GDP was less than 2 percentage points from 12.9 per cent to 11.2 per cent.

QUES) DIFFERENT SERVICE INDUSTRY IN INDIA AND THEIR CONTRIBUTION TO INDIAN ECONOMY? ANS) Various services in dustry in india are as follows?

Wholesale & retail trade Health care & social assistance Accommodation & food services Professional, scientific & technical services Educational services Finance, insurance, real estate & leasing Transportation & warehousing Information, culture & recreation Public administration & defence Business, building & other support services Other services

Their role in Indian economy individually are as follows? Wholesale and retail

whether you are buying food, clothing, or other necessities, putting gas in the car, picking up supplies for a do-it-yourself project, getting a new pair of glasses, or simply browsing in a mall, youre using the services of establishments in the wholesale & retail trade industry. This industry is the largest employer , providing just over 15% of all the jobs and generating 12% of the provinces total GDP. Health and edThe most important services in the Indian economy has been health and education. They are one of the largest and most challenging sectors and hold a key to the country's overall progress. A strong and well-defined health care sector helps to build a healthy and productive workforce as well as stabilise population.The 'Ministry of Health and Family Welfare' is responsible for implementation of various programmes in the areas of health and family welfare, prevention and control of major communicable diseases as well as promotion of traditional and indigenous systems of medicines. Accordingly, it is carrying out measures like National health policy, implementing National Rural Health Mission (NRHM) in different States, conducting surveys and studies, etc. While, education strongly influences improvement in health, hygiene and demographic profile. The 'Ministry of Human resource Development' is involved in eradicating illiteracy from the country. It is concerned with universalisation of elementary education, achieving full adult literacy, laying down of National Policy on Education, meeting needs of secondary and higher education for all, etc. India has achieved impressive demographic transition owing to the decline of crude birth rate, crude death rate, total fertility rate and infant mortality rate as well as gained high literacy rate in the country. Ucation It and Ites The era of economic liberalisation has ushered in a rapid change in the service industry. As a result, over the years, India is witnessing a transition from agriculture-based economy to a knowledge-based economy. The knowledge economy creates, disseminates, and uses knowledge to enhance its growth and development. One of the major functional pillars of this economy is Information Technology (IT) and IT-enabled services (ITeS) industry. The 'Department of Electronics and Information Technology' has been making continuous efforts to make India a front-runner in the age of Information revolution. IT continues to be a dominating sector in the overall growth of the Indian industry. A large number of

Indian software companies have acquired international quality certification. Several policies have also been framed on the key issues of IT infrastructure, electronic governance as well as IT education. Media and entertainment Another major and upcoming service industry has been media and entertainment. It is basically an intellectual property-driven sector with small to large players spread throughout the country. It covers film, music, radio, broadcast, television and live entertainment. It plays a significant role in creating people's awareness about national policies and programmes by providing information and education to all. The 'Ministry of Information and Broadcasting' is responsible for formulation and administration of the rules, regulations and laws relating to media industry. Besides, retailing has been one of the fastest growing service sector both in terms of turnover and employment. Many national and global players have been investing in the retail segment and are making all efforts to further expand the sector. Out of the total retail outlets in the country, most of them are related to food items