Latest news with #ServiceSectorReport
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Business Standard
4 days ago
- Business
- Business Standard
India's services sector 'epochal opportunity' for investors: Report
India's services sector contributed 55 per cent to the country's gross domestic product in FY25, up from 40 per cent in the early 1990s and providing 'wealth-creation opportunities', said a report on Monday. The sector is the cornerstone of India's ambition to be a $5 trillion economy and an 'epochal opportunity' for investors, said Axis Mutual Fund's report named Scaling New Hights-India's Service Sector Report The sector grew at an average of 8.3 per cent annually in the post-pandemic period (FY23-FY25). Sub-sectors such as IT, financial services, healthcare, telecom and e-commerce are seeing 'unprecedented momentum' due to digitalisation, rising incomes and urbanisation, it said. For investors, this structural growth translates into potential wealth creation opportunities over the long term. IT services are projected to grow 4-6 per cent in FY26 as companies tap into generative artificial intelligence and Cloud technologies. Financial services continue their digital transformation, with mutual fund assets under management growing at over 20 per cent compound annual growth rate over the past decade. Health care reported a 62 per cent year-on-year expansion in March 2025, driven by tech adoption and rising demand. Indian ecommerce's size will triple from $103 billion in 2024 to $325 billion by 2030, making it one of Asia-Pacific's fastest-growing markets, said the report. Investment opportunity The sector has consistently attracted the highest share of foreign investments, accounting for 19 per cent of all such inflows in FY25. Investors looking to benefit from this trend may consider: Sector-focused mutual funds and exchange-traded funds, including those benchmarked to the Nifty Services Sector index, which posted a 10-year CAGR of 13 per cent. Stocks in key sub-sectors like IT, BFSI, telecom, and healthcare that stand to gain from these structural shifts. Emerging themes such as fintech, medtech and premium consumer services. The report said that while the long-term story remains strong, investors should be mindful of short-term volatility, especially during global downturns. A diversified portfolio and long investment horizon are recommended.
Hans India
5 days ago
- Business
- Hans India
Services sector propelling economy towards $5-trn goal
New Delhi: India's service sector is demonstrating a significant role in the country's journey towards becoming a $5 trillion economy, a report said on Monday. For decades, the sector has not only been contributing massively to India's gross domestic product (GDP), but has also become the key driving force to the nation's economy, rising from 40 per cent contribution in GDP in the 1990s to accounting for 55 per cent gross value added (GVA) in FY25, according to the Axis Mutual Fund's 'Service Sector Report'. 'From contributing approximately 40 per cent of India's GDP in the early 1990s, the service sector surged to account for 50.6 per cent of India's gross value added (GVA) in FY14. This dominance has only amplified, reaching an estimated 55 per cent in FY25,' the report stated. All verticals of the service sectors, including information technology (IT) services, finance and banking, healthcare, telecommunications, and e-commerce, have shown immense growth in the last two decades.
Hans India
5 days ago
- Business
- Hans India
India's service sector scales new heights towards $5 trillion economy
New Delhi: India's service sector is demonstrating a significant role in the country's journey towards becoming a $5 trillion economy, a report said on Monday. For decades, the sector has not only been contributing massively to India's gross domestic product (GDP) but has also become the key driving force to the nation's economy, rising from 40 per cent contribution in GDP in the 1990s to accounting for 55 per cent gross value added (GVA) in FY25, according to the Axis Mutual Fund's 'Service Sector Report'. 'From contributing approximately 40 per cent of India's GDP in the early 1990s, the service sector surged to account for 50.6 per cent of India's gross value added (GVA) in FY14. This dominance has only amplified, reaching an estimated 55 per cent in FY25," the report stated. All verticals of the service sectors, including information technology (IT) services, finance and banking, healthcare, telecommunications, and e-commerce, have shown immense growth in the last two decades. IT services grew from $8 billion in 2000 to $245 billion in FY24, with further expansion to $300 billion expected by FY26. The digital revolution gave a magic shift to the Banking Financial Services and Insurance (BFSI) sector, with mutual fund AUM growing at over 20 per cent CAGR over the past decade to reach Rs 72.19 lakh crore in May 2025, the Axis Mutual Fund report said. The healthcare market size is projected to reach $370 billion by 2027, with 62 per cent year-on-year growth reported in March 2025 alone. The telecom sector has seen data consumption per user soar 450 times since 2014, reaching 28 GB per month in 2025, and the e-commerce market is expected to triple from $103 billion in 2024 to $325 billion by 2030, it added. India's nominal GDP doubled in in last decade (2015-2025). In FY25, it reached to nearly $3.97 trillion and is estimated to surge to around $4.19 trillion by the end of the calendar year, providing a formidable foundation for the service sector's expansion. Rapid digitisation under the 'Digital India' initiative, proactive government policies including ease of doing business policies, liberalisation in foreign Direct Investment (FDI) norms, and sector-specific incentives have been creating a fertile ground for the upscale of the service sector, the report said.
India.com
5 days ago
- Business
- India.com
Indias Service Sector Scales New Heights Towards $5 Trillion Economy
New Delhi: India's service sector is demonstrating a significant role in the country's journey towards becoming a $5 trillion economy, a report said on Monday. For decades, the sector has not only been contributing massively to India's gross domestic product (GDP) but has also become the key driving force to the nation's economy, rising from 40 per cent contribution in GDP in the 1990s to accounting for 55 per cent gross value added (GVA) in FY25, according to the Axis Mutual Fund's 'Service Sector Report'. 'From contributing approximately 40 per cent of India's GDP in the early 1990s, the service sector surged to account for 50.6 per cent of India's gross value added (GVA) in FY14. This dominance has only amplified, reaching an estimated 55 per cent in FY25," the report stated. All verticals of the service sectors, including information technology (IT) services, finance and banking, healthcare, telecommunications, and e-commerce, have shown immense growth in the last two decades. IT services grew from $8 billion in 2000 to $245 billion in FY24, with further expansion to $300 billion expected by FY26. The digital revolution gave a magic shift to the Banking Financial Services and Insurance (BFSI) sector, with mutual fund AUM growing at over 20 per cent CAGR over the past decade to reach Rs 72.19 lakh crore in May 2025, the Axis Mutual Fund report said. The healthcare market size is projected to reach $370 billion by 2027, with 62 per cent year-on-year growth reported in March 2025 alone. The telecom sector has seen data consumption per user soar 450 times since 2014, reaching 28 GB per month in 2025, and the e-commerce market is expected to triple from $103 billion in 2024 to $325 billion by 2030, it added. India's nominal GDP doubled in in last decade (2015-2025). In FY25, it reached to nearly $3.97 trillion and is estimated to surge to around $4.19 trillion by the end of the calendar year, providing a formidable foundation for the service sector's expansion. Rapid digitisation under the 'Digital India' initiative, proactive government policies including ease of doing business policies, liberalisation in foreign Direct Investment (FDI) norms, and sector-specific incentives have been creating a fertile ground for the upscale of the service sector, the report said.
