The state spending on health, education, family welfare and scientific services grew faster than nominal gross domestic product (GDP) growth during the period between financial years of 2003-04 and 2010-11, a fresh research by Crisil revealed.
Crisil analysed the trends in government spending of Centre as well as states from 2003-04 to 2010-11, and spending on education and health grew at a rate of 19 per cent and 17.5 per cent, faster than GDP growth rate of 15.3 per cent.
Indian business process outsourcing (BPO) industry will be best suited to offer high-end services as low-end services have become unsustainable, most experts who attended the software industry lobby body Nasscom’s annual BPO summit said.
India once enjoyed labour arbitrage but now many countries like Philippines are offering call centre services at a cheaper cost. The advent of cloud computing, and a fall in spending on technology due to the persistent global economic slowdown have also made low-end work unsustainable for Indian companies.
Consumption in rural India is growing at a faster pace than in urban areas, thanks to an increase in household incomes, a fresh report by credit rating agency CRISIL said.
The CRISIL report says that residents of rural India additionally spent Rs. 3,750 billion between 2009-10 and 2011-12, while additional spending by urbanites was Rs. 2,994 billion during the same period.
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