|With reference to India's International trade, consider the following statements|
|1. For more than a decade, Indian export growth story has been dominated by the Services sector.|
|2. More than 75% of Indian export of services commodities is namely software services.|
|Which of the statements given above is/are correct?|
A) Only 1
B) Only 2
C) Both 1 and 2
D) neither 1 nor 2
Correct Answer: A
Solution :[a] The services sector has been the major growth propeller of the Indian economy with the highest sectoral contribution in India's Gross Domestic Product (GDP). India's services sector has matured considerably during the last few years and has been globally recognized for its high growth and development. This sector has been growing at an annual growth rate of about 28% during the last 5 years. Information technology in India is an industry consisting of two major components: IT Services and business process outsourcing (BPO). The sector has increased its contribution to India's GDP from 1.2% in 1998 to 7.5% in 2012. According to NASSCOM, the sector aggregated revenues of US 100 billion in 2012, where export and domestic revenue stood at US69.1 billion and US 31.7 billion respectively, growing by over 9%. The industry's share of total Indian exports (merchandise plus services) increased from less than 4% in FY 1998 to about 25% in FY 2012. According to Gartner, the "Top Five Indian IT Services Providers" are Tata Consultancy Services, Infosys, Cognizant, Wipro and HCL Technologies.
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