India’s services sector, currently contributing $2.2 trillion to the GDP, is projected to grow to $6 trillion by 2035, with a compound annual growth rate of approximately 10.6%. This expansion will elevate the sector’s GDP share to nearly 60%, up from the current 55%, as per a report by OmniScience Capital.
The report emphasizes the increasing significance of India’s services sector in the country’s journey towards becoming a $10 trillion economy by 2035, presenting a substantial economic opportunity of around $6 trillion. It also notes that the services sector is the largest and fastest-growing component of India’s Gross Value Added, exhibiting impressive growth rates.
Financial, real estate, and business services have been the frontrunners in driving growth within the services sector, with a 10-year compound annual growth rate of 11.3% and a three-year growth of 14%. Additionally, public administration, defense, and other services have maintained robust double-digit growth, reflecting consistent government expenditure.
India’s Services PMI has shown a positive trend, moving into a higher expansionary range in recent years, indicating a stronger and sustained growth trajectory in service activities. Moreover, India’s global services exports share has increased from 1.9% in 2005 to 4.3% in 2023, underlining its growing presence in the global market.
The report also highlights various sectors such as banking, logistics, IT services, and professional services, which are poised for significant growth opportunities in the coming years. It mentions the broad spectrum of opportunities offered by India’s listed services companies, with over 470 companies having a market capitalization exceeding Rs 800 Cr and a combined market capitalization of nearly Rs 197 trillion.
