“Service Sector To Push India’s Economic growth to 7.5-8% this Fiscal”

Chief Economic Advisor (CEA)of India expect the service sector to act as a stabilizer to the country’s economy, helping it grow by 7.5-8% in the current financial year. His views come amidst fear that even the service sector which has till now been relatively immune to drastic slowdown, will get negatively affected in a major way in the remaining months of 2008-09.

The CEA however admitted that even the services sectors like the other sectors has seen slow down in the growth momentum this year. He however believes that the cyclical decline for the services sector would be comparatively much less than the manufacturing sector.

Service sector is a major part of the Indian economy, with it dominating the economic scene especially in recent times. IT and IT enabled services (ITES) have been the cynosure of the country’s development, putting in on the world map. Such positive forecasts would do a world of good for the sector, even as the country tries to defend itself from the pains of global recession. But this has to be seen in perspective with global economic growth especially from US that has gone into recession, and which accounts for around 50% of the IT and ITES portfolio.