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Mobile firms lead upbeat forecast for service sector

New Delhi, Dec. 25: An Ascon survey for the third quarter of the current fiscal predicts strong growth for the service sector in the next six months.

However, the service sector survey (S-Ascon) conducted by the Confederation of Indian Industry (CII) paints a bright outlook for most other sectors of the economy next year. It also forecasts continued growth over the next six months as compared with the current year.

The survey says: “This is important given the fact that services contribute the largest sector of our economy and this is the only comprehensive forecast of the diversified and fast growing services sector in the country.”

Within the telecom sector, the fastest growing sector will be cellular phones, says the survey. It is expected to add 65 per cent more subscribers on a yearly basis. Sanctions and disbursement by housing finance companies are also expected to grow by 30 per cent annually.

The computer software sector, earmarked as one of the fast growing sector, is expected to grow between 25 per cent to 30 per cent. However, computer hardware services is expected to rise marginally by 15 per cent. On the other hand, occupancy in hotels is forecasted to rise by 10 per cent to 15 per cent. Moderate growth of approximately 5 per cent to 10 per cent is expected in the construction industry.

Different sub-sectors of the power sector have highlighted positive growth of 1 per cent to 5 per cent. However, growth in thermal power is projected to be higher, ranging between 5 per cent to 10 per cent.

The survey points that leasing and higher purchase sector does not foresee positive growth next year. This could be since the sector was in the midst of restructuring with the regulatory framework being restrictive, constraining its growth.

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