Telecommunications Post Highest Growth in Service Sector: FICCI Survey

The new FICCI Survey on service sector paints resilient picture of service sector in India. Telecommunication sector topped the survey as the three segments with biggest growth were wireless subscribers, internet subscribers and broadband subscribers; they witnessed growth of 50%, 26% and 87% (y-o-y) respectively. Railways, IT/software services and Entertainment & media were other major sectors that witnessed growth between 15% and 25% (y-o-y).

Organised retail and Housing finance are the two biggest surprises in the survey. Both these segments grew at 12% and 15% respectively thwarting the general assumption that these segments were doomed in the current economic scenario. Both these segments suffered heavily in stock markets citing demand constrains. News that players in Organised Retail have started restructuring their businesses also added to this perception.

Growth in earnings from Foreign Tourists during Apr-Nov period is another surprising revelation of the survey. Earning from foreign tourist grew at 16.5% (y-o-y) despite numerous terrorist attacks that took place in the same period of time, indicating foreign tourists were undeterred by terrorists. The survey covered 31 service sector segments and gauged their performances during Apr-Nov 2008 period over corresponding period of time.