Services sector employing one third of workforce in Telangana
Hyderabad: Despite the unprecedented disruption caused by the pandemic to the services sector due to the contact-intensive nature , Telangana’s services sector Gross Value Added (GVA) experienced a positive growth rate at current prices (0.91%) in 2020-21 as compared to the negative growth rate at the national level (-4.65%). The services sector remained a dominant […]
Hyderabad: Despite the unprecedented disruption caused by the pandemic to the services sector due to the contact-intensive nature , Telangana’s services sector Gross Value Added (GVA) experienced a positive growth rate at current prices (0.91%) in 2020-21 as compared to the negative growth rate at the national level (-4.65%).
The services sector remained a dominant sector in Telangana’s economy with a share of 61.3 per cent in the Gross State Value Added (GSVA) at current prices in 2021-22, said the Telangana Socio Economic Outlook 2022.
The services sector covers a wide range of services, including trade, hotels and restaurants, transport, storage and communication, financing, insurance, real estate, business services, community, social, and personal services.
Approximately one-third (33.3 per cent%) of the total workers in Telangana are employed in the services sector. Among the total workers in the service sector, more than one-third (37.7 per cent) work in the ‘trade, hotels and restaurants’ sub-sector.
The services sector in urban Telangana employs a greater share of persons (68 per cent) than those employed in urban India (61.4 per cent). In rural Telangana, the sector employs a smaller share (15.6 per cent) of persons than rural India (18.4 per cent).
Between 2014-15 and 2020-21, IT exports from Telangana experienced a Compounded Annual Growth Rate of 14.01%. The total employment in the IT sector increased from nearly 3.7 lakh to 6.28 lakh.
In tourism, the State witnessed an increase in the domestic tourist footfall from 7.2 crore in 2014-15 to 8.3 crore in 2019-20, an increase of 14.6 per cent. During this period, the foreign tourist footfall increased from 75,171 to 3.23 lakh, a 4.3 times increase. However, due to the travel restrictions, lockdowns, and border closures during the pandemic, there was a steep decline of 4.2 crore in the domestic tourist arrivals between 2019-20 and 2020-21. In this span, the foreign tourist footfall declined by 2.7 lakh.
The Telangana Government is keen on integrating the innovations in the service sector with other sectors like agriculture, which are dominant in rural areas, and would be able to benefit from the innovations in IT/ITeS currently focused in urban areas. It is also trying to supplement the existing potential through institutional support to the firms, especially startups, via initiatives such as T-Hub, WE-Hub, TSIC and T-works. The Government is also actively promoting the use of artificial intelligence, blockchain technology and drone technologies.
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