Blitz Bureau
NEW DELHI: India’s services sector, now contributing about $2.2 trillion to gross domestic product (GDP), is expected to grow to about $6 trillion by 2035, implying a compound annual growth rate (CAGR) of about 10.6 per cent, a report said on March 17.
The huge surge will increase services’ share of GDP to nearly 60 per cent while it currently accounts for about 55 per cent of GDP, the report from OmniScience Capital said. The report highlighted the growing dominance of India’s services sector “as the country progresses toward becoming a $10 trillion economy by 2035, translating into a roughly $6 trillion economic opportunity.”
The report highlighted the services sector as the largest and fastest-growing component of India’s Gross Value Added, delivering a 10-year CAGR of over 10 per cent and 3-year CAGR of 13.5 per cent, higher than other economic segments.
Within services, financial, real estate and business services led growth with a 10‑year CAGR of 11.3 per cent and three‑year growth of 14 per cent. Similarly, public administration, defence and other services have maintained consistent double-digit growth, reflecting sustained government spending.
India’s Services PMI has shifted into a higher expansionary range, rising from roughly 50–55 between 2015–2020 to about 55–60 in recent years, indicating stronger and sustained growth in service activity. India’s share of global services exports rose from 1.9 per cent in 2005 to 4.3 per cent in 2023.
