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Services sector is estimated to grow by 8.8 per cent, almost the same as in 2015–16 with the following major features:
• As per WTO data, India’s commercial services exports increased from US$ 51.9 billion in 2005 to US$ 155.3 billion in 2015. The share of India’s commercial services to global services exports increased to 3.3 per cent in 2015 from 3.1 per cent in 2014 despite negative growth of
0.2 per cent in 2015 as compared to 5.0 per cent growth in 2014. This was due to the relatively greater fall in world services exports by 6.1 per cent in 2015.
• As per RBI’s BoP data, India’s services exports declined by 2.4 per cent in 2015–16 as a result of slowdown in global output and trade. However, in the 1st half of 2016–17, services exports increased by 4.0 per cent compared to 0.3 per cent growth in the same period of previous year. Growth of net services, which has been a major source of
financing India’s trade deficit in recent years, was (–) 9.0 per cent in 2015–16 and (–) 10.0 per cent in 1st half of 2016–17 due to relatively higher growth in imports of services. Growth of software exports which accounted for 48.1 per cent share in services exports was 1.4 per cent in 2015–16 and 0.1 per cent in the 1st half of 2016–17.
• Tourism sector witnessed a growth of 4.5 per cent in terms of foreign tourist arrivals (FTA) with 8.2 million arrivals in 2015, and a growth of
4.1 per cent in foreign exchange earnings (FEE) of US$ 21.1 billion. In 2016 (January-December), FTAs were 8.9 million with growth of 10.7 per cent and FEE (US$ terms) were at US$ 23.1 billion with a growth of 9.8 per cent.
• The Nikkei/Markit Services PMI for India was at a high of 57.5 in January of 2013. It fell to 46.7 in November 2016 from 54.5 in October 2016. However, it increased marginally to 46.8 in December 2016.
• The Baltic dry index (BDI), an indicator of both merchandise trade and shipping services, which showed some improvement up to 18 November 2016 declined to around 910 on 13 January 2017.