| The world in a palm
New Delhi, April 20 (PTI): The services sector continued to grow at an increased pace in 2002-03 over the previous fiscal with cellular phones and housing finance clocking phenomenal growth rates of 86 per cent and 42 per cent respectively, a CII quarterly survey has said.
The combined sectors of communications, hotels, transportation and trade grew by 7.8 per cent in 2002-03 while the combined rate of growth for business services, financing, insurance and real estate was 6.5 per cent, the chamber said in a release.
The fastest growing sector was cellular telephones, which grew by more than 86 per cent in the last fiscal as against 80 per cent in 2001-02. However, it is expected to grow lower at 65 per cent during the current year.
The tourist arrivals had increased by 15 per cent during the last fiscal compared with a fall of 25 per cent in 2001-02. Though it estimates the tourist sector to grow by 15-20 per cent this year, the survey was conducted before the outbreak of severe acute respiratory syndrome (SARS).
Sanctions for home loans rose by 42 per cent during 2002-03 which is higher than previous year’s 40 per cent and is expected to rise next year by more than 35 per cent.
While the software industry grew by 20 per cent during 2002-03, its exports rose by 30 per cent and are expected to grow between 25-35 per cent this year.
The hardware industry grew by 12 per cent last fiscal as against 15 per cent in the previous year and its exports rose by 20 per cent which is more than the 16 per cent of 2001-02. The industry is forecast to grow by about 15 per cent this year.
The construction industry grew by 12 per cent in 2002-03 as against 5.3 per cent in the previous year. The project exports grew lower by 10 per cent last fiscal compared with 26 per cent in 2001-02 and are expected to rise by 10-15 per cent in 2003-04.
The recovery in the manufacturing and services sector was aided by good performance in power generation with the thermal power sector doubling the growth rate to 6.5 per cent during the last fiscal over the 3.2 per cent in 2001-02.
The thermal output is expected to rise by 5-10 per cent in the current year. However, the drought conditions had an impact on hydel power which fell by 8.4 per cent in 2002-03 over the 0.6 per cent fall in the previous year.
Exports through air cargo, which had fallen by about 4 per cent in 2001-02, rose by 9 per cent last fiscal while imports of air cargo rose by 12 per cent during the reporting period as against a fall of 2 per cent in the previous year.