New Delhi: Indian service sector is likely to witness a growth of over 9.5% in the current year, driven by huge investments, despite a slowdown in economic growth, a CEOs survey says.
In a snap poll conducted by Confederation of Indian Industry (CII), majority of the CEOs from services sector felt that expansion in the sector would continue during the current year with more money to be pumped in, resulting in creation of more job opportunities.
“Both investment and employment is expected to increase in the services sector despite pressure on profitability during the current year,” CII Director General Chandrajit Banerjee said.
CEOs also expect employment to increase during the year, particularly in the healthcare sector, followed by retail, tourism, IT and ITeS and financial services.
The survey revealed profits would be under pressure due to high interest rates, stiff domestic competition and increase in staff cost.
Major impediments to the sector’s growth were global economic slowdown, deceleration in the economy and shortage of talent and skills, it said.