Introduction

‡ Service Sector in India today accounts for more than half of India's GDP. ‡ In the financial year 2008-2009, the share of services, industry, and agriculture in India's GDP is 53.7 per cent, 29.1 per cent, and 17.2 per cent respectively. ‡ India ranks fifteenth in the services output and it provides employment to around 23% of the total workforce in the country.

Telecom) Banking & Insurance Dwellings. Real Estate Business Services Public Administration. Defence Personal Services Community Services .Various service sectors in India ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Trade Hotels and Restaurants Railways . other transport & storage Communication (Post.

The Reasons for the growth of the Services Sector contribution to the India GDP ‡ Many foreign consumers have shown interest in the country's service exports. ‡ The foreign companies seeing this have started outsourcing their work to India. which in its turn has made the sector contribute more to the India GDP. . ‡ Large pool of highly skilled. low cost. and educated workers in the country. ‡ This has given a major boost to the Services Sector in India.

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Tourism & Hospitality .

‡ Forex earnings from tourism in India rose from US$ 3 bn in 02 to 11. US$ 100bn in 09.5 by 2018.1% to national GDP & provides employment to over 41 mn people.3% & rising to US$275. ‡ Tourism is expected to contribute around 6. growing at 7.96 bn in 08.Introduction ‡ India s travel & tourism industry is expected to generate approx. .

Inbound & outbound tourists ‡ Inbound tourists arrival has increased from 0.67% in 08. whereas outbound tourists are over 8.46% in 04 to 0. ‡ Forex earnings grew at a much faster rate at 28.5%(4.5mn. .9% in 07 against 20% in 08. ‡ Outbound tourists market has been growing at an annual growth rate of 25%.5mn) of global tourists. ‡ India accounts for 0.

‡ Current earnings being US $821. .8%.86bn by 2012 at a growth rate of 8.40mn. ‡ Estimated earnings of US$1. ‡ The country also has some of the best hospitals that are highly equipped & provide services at a fraction of costs.Medical Tourism ‡ India is aggressively promoting the concept of medical tourism & capitalizing on its low cost & highly trained doctors.

HOSPITALITY .

. ‡ Estimated around 40 international hotel brands by 2011.‡ Country s hospitality sector has witnessed an increase in the occupancy ratios & avg room rates. ‡ With the occupancy ratio of around 75-80% the avg increase in room rates hover around 22-25%. ‡ Estimated 10mn foreign visitors by 2010 thereby creating a demand for 100000 rooms approx.

International Recognition .

‡ Today India is seen as a prime destination for investment by overseas investors across the board. with economic development being the focal point of the progress. ‡ India s favorable demographic and economic scenario makes it an attractive destination for the real estate investors.REAL ESTATE ‡ The Indian economy is steadily moving forward on its path to prosperity. .

. ‡ It is the second largest employing sector in India and is linked to about 250 ancillary industries like cement.‡ Real estate sector has been deregulated and liberalized and is growing at a rate of 30% and has emerged as one of the most appealing investment areas for domestic as well as foreign investors. brick and steel. ‡ A unit increase in this sector has a multiplier effect and the capacity to generate income as high as five times.

‡ India has second largest population in world ‡ Increasing FDI in this sector ‡ Easy availability of finance ‡ Expansion of organized retail sector ‡ Availability of home loans at competitive rates ‡ Rising income . creating demand for housing.KEY GROWTH DRIVERS ‡ Growth of India s middle class.

TOP PLAYERS ‡ ‡ ‡ ‡ ‡ UNITECH HIRANANDANI DLF ANSAL GROUP RAHEJAS .

GOVERNMENT INITIATIVES ‡ 100% FDI allowed in this sector ‡ Minimum capital investment for wholly owned subsidiaries and JVS stand at us$ 10 million and us$ 25 million respectively. . ‡ Full repatriation of original investment after 3 years. ‡ Government has allowed FDI in retailing with 51% participation.

‡ The Hiranandani s are constructing 5000 5star hotel rooms. ‡ Parsvanath Developers has tied up with the AlHasan Group in Oman. which will come up between Abu Dhani and Dubai. . ‡ Kolkata s South City Project is working on 2 projects in Dubai.GOING GLOBAL ‡ Embassy Group has linked a deal with the Serbian government to construct a us$ 600 million IT park in Serbia.

3 million new dwellings in urban India alone by 2015. ‡ The real estate sector has grown at an increasing rate of about 30% and is expected to continue growing at 25% for the next 3 to 4 years. ‡ An estimated us$ 25 billion investment will be required over the next 5 years in urban housing.ALL-ROUND DEVELOPMENT ‡ There will be demand for over 24. .

. since the metros are getting saturated.mainly because the high economic growth. shortage of residential spaces. which is expected to reach $140 billion by 2012.projecting a growth of 21% per annum. ‡ The sector is currently on a high.‡ Year 2007 saw the sector clocking $48 billion. ‡ The focus though would now shift more towards smaller cities. growth in Ites and retail.

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