changing pattern of services industrythe share of digital cable and direct-to-home (dth) as a result...
TRANSCRIPT
THE ASSOCIATED CHAMBERS OF COMMERCE AND INDUSTRY OF INDIA
Thursday,5thApril,2018NewDelhi
Opportunities and ChallengesOpportunities and ChallengesOpportunities and Challenges
Changing Pattern ofChanging Pattern ofChanging Pattern of
SERVICES INDUSTRYSERVICES INDUSTRYSERVICES INDUSTRY
FOCUS SECTORS
Knowledge Parnter
Media & Entertainment
Fintech & Financial Services
Hotels & Restaurants Business
Healthcare & Wellness
The Services sector is not only the dominant sector in India’s GDP, but has also attracted significant foreign
investment flows, contributed significantly to exports as well as provided large-scale employment. The Services
sector is the key driver of India’s economic growth. The sector contributed around 53.8 per cent of its Gross
Value Added in 2016-17 and employed 28.6 per cent of the total population. Net services exports from India
reached US$ 67.5 billion in 2016-17 while the sector attracted 60.7 per cent of India’s total FDI inflows. The
Central Statistics Office’s (CSO) provisional estimates of Gross Value Added (GVA) in FY 2016-17 (PE)
indicate that the service sector grew 7.74 per cent year-on-year to Rs 21.43 trillion (US$ 332.74 billion). Out of
overall services sector, the sub-sector comprising financial services, real estate and professional services
contributed US$ 305.8 billion or 20.5 per cent to the GDP. The sub-sector of community, social and personal
services contributed US$ 188.2 billion or 12.6 per cent to the GDP.
(Souce : Economic Survey 2016-17, Media Reports,
Press Releases, DIPP Publication, Press Information Bureau)
Healthcare and Wellness
In 2016, the Indian Healthcare market had a turnover of $110 billion and is expected to touch $280 billion by 2020.
Healthcare delivery constitutes 65% of the overall Indian Healthcare market.
FDI in hospital and diagnostic centers was around $4 billion (April 2000 and September 2016)
Medical Tourism In India
Current: $3.9 billion (2016)
Projected: $8 billion (2020)
The Healthcare revenue globally was $7 trillion in 2015, and it is $110 billion in India in 2016, and is expected to
grow to $280 billion by 2020. Indian Healthcare sector became the fifth largest employer, both in terms of direct as
well as indirect employment with total direct employment of 4.7 million people in 201561. Healthcare delivery
constitutes 65% of the overall Indian healthcare market.
Influenced by modern lifestyles and increased awareness, Wellness industry is growing at a tremendous pace with
an increasing share of the global economy. India's wellness market in 2015 was estimated at approximately $13
billion and it is expected to grow at a CAGR of nearly 12% for the next 5 years. The industry can achieve about $23
billion by 2020.
Globally, Wellness industry represents a $3.7 trillion economy, with a growth of 10.6% from 2013-2015.
Global yoga market is estimated at $80 billion.
Fintech & Financial Services
The traditional Financial Services have globally undergone a radical transformation that has been brought about by
technology and innovation.
In 2015, more than 12,000 start-ups sprouted in the Fintech space across the world with a massive investment of
USD 19 billion.1 By definition, Fintech comprises of technology–based businesses that are competing against,
enabling or collaborating with existing financial institutions.
The industry is likely to continue its current growth trajectory, with the global Fintech software and services sector
predicted to touch USD 45 billion by 2020 at a Compound Annual Growth Rate (CAGR) of 7.1%.
ASSOCHAM along with the Ministry of Commerce, Ministry of Communications, Ministry of Information
and Broadcasting, Ministry of Electronics and Information Technology, Ministry of Health and Family
Welfare, Ministry of Finance, Government of India and the other important stakeholders is organizing a one
day Annual Conference on the Changing Pattern of Services Industry Opportunities and Challenges on 5th
April, 2018 at The Taj Mahal Hotel, Mansingh Road, New Delhi from 09:00 a.m. to 04:00 p.m.
The Conference will deliberate on Focus Sectors including Healthcare & Wellness, Fintech & Financial
Services, Media & Entertainment and Hotels & Restaurants Business.
SERVICES SECTORS: BACKGROUND
FOCUS SECTORS:
At this juncture, India has created an ecosystem that provides start-ups an opportunity to exponentially grow into
big businesses. Right from delving into a range of unexplored segments to engaging with foreign markets, Fintech
start-ups are delivering innovation that was previously difficult to achieve. The Indian Fintech software market is
poised to touch USD 2.4 billion by 2020 from the current USD 1.2 billion in the Financial Year (FY) 2016.
In the last few years, the Indian economy, which is significantly cash-driven, has taken advantage of the Fintech
opportunity. With a range of options, including e-wallets, lending and insurance, the variety of services provided in
this sector are immense and have changed the way consumers carry out their daily transactions. Fintech in India is
especially advantageous, since the country boasts of an unrivalled youth demographic which is rapidly growing.
Furthermore, smartphone penetration is likely to witness an upsurge - from 53% in 2014 to 64% by 2018. The
financial services market in India is primarily untapped, with 40% of the population having no association with any
bank and more than 80% of the transactions carried out through cash. This represents an opportunity for Fintech
start-ups to massively spread their wings in different segments.
A range of factors have contributed towards the success and development of the Fintech ecosystem in India. With
India’s population going digital at a very fast pace, the number of internet users touched 450-465 million in June
2017 and is expected to rise even further. With government’s consistent efforts to promote digital services through
‘Digital India’, there lies an opportunity for existing Fintech start-ups as well as potential investors.
Apart from this, the Government’s push towards financial inclusion for India’s population is a critical factor as well.
The launch of ‘Jan Dhan Yojana’ scheme aims to provide a bank account to every citizen. The Fintech start-ups can
capitalise on such opportunities by offering simplified and efficient transaction services. The Government’s
biometric identification database, Aadhar, contains information of over 1 billion Indian citizens; this is likely to
minimise the effort required for first-level verification of customers.
Media & Entertainment
Global Media & Entertainment (M&E) industry is expected to touch a market size of $2.14 trillion by 2020.
The Indian Media and Entertainment (M&E) industry is a sunrise sector with a rapid growth curve. The market size
of M&E industry in India is estimated to be $20.5 Billion (INR 1,370.63 billion) in 2016. M&E is one of the
industries identified by the government under “Make in India” initiative.
India is the world’s second largest television market with 181 million television households in 2016 and 892
television channels100 (as on 30 Nov 2016). Television industry generated total revenue of $9.6 billion (INR 641.8
billion) in 2016 with 65.96% share coming from subscription and remaining 34.04% from advertising. TV
penetration reached 64% of total households in 2016. As is evident in the graph below, there has been an increase in
the share of digital cable and direct-to-home (DTH) as a result of digitization.
The Indian Film Industry is the largest in the world in terms of number of films produced in terms of revenue, the
sector has gross box office realizations of $2.06 billion (INR 138 billion)105 in 2015 which is expected to grow at
11% CAGR reaching $3.56 billion (INR 238 billion) by 2020.
FDI inflows in this sector was $6.3 billion (April 2000-Dec 2016)
Ministry of Information and Broadcasting has set up the Film Facilitation Office (FFO) to facilitate efficient
approvals and improving ease of shooting in India.
Setting up of ‘Centres of Excellence’ with state-of- the-art facilities by state governments to promote gaming,
animation, media & entertainment sector.
Increase of FDI limit to 49% in television news channels and FM radio and 100% FDI allowed in digital cable, DTH
services.
Hotels & Restaurants Business
The value of the Hotels and Restaurants Industry is expected to continue to grow at a rate (averaging 8.1% annually
throughout the forecast period), as India seeks to develop and diversify the types of tourists served. Its value will
increase from $28.1 billion in 2016 to $39.8 billion by 2020.
Currently, 100% FDI is allowed under the automatic route in the tourism & hospitality sector. 100% FDI is also
allowed in tourism construction projects, which include development of hotels, resorts & recreational facilities.
THE ASSOCIATED CHAMBERS OF COMMERCE AND INDUSTRY OF INDIAASSOCHAM Corporate Office: 5, Sardar Patel Marg, Chanakyapuri, New Delhi – 110 021
Tel: 011-46550555 (Hunting Line) • Fax : 011-23017008, 23017009
For Partnership/Sponsorship please contact or log on www.asssocham.org
Dheeraj Kumar PandeyExecutive
Manjesh JhaExecutive
ASSOCHAM GLOBAL HEADQUARTERS, NEW DELHI, INDIA
PARTNERSHIP OPPORTUNITIES
Categories
Gold
Platinum
Silver
Logo
on
the
mai
n B
ack
Dro
p
Adv
ertis
emen
t in
New
spap
er
Del
egat
e Pa
sses
4
6
2
Spe
aker
's S
lot i
n Te
chni
cal S
essi
on
Spe
aker
's S
lot i
n In
augu
ral S
essi
on
Part
ners
hip
Am
ount
(`)
3,00,000`
5,00,000`
1,00,000`
Lite
ratu
re a
t Con
fere
nce
Hea
d Ta
ble
Sta
ndee
s
2
3
1