India's transition to service-based economy behind growth surge: Research
This optimistic growth rate and favourable economic prospects not just lifted millions of people from poverty but also made an economic transition from an agrarian-based economy to a service-sector-focused economy. Unlike some West and East Asian economies, which have initially focused on industrial expansion by drawing labor from the agricultural sector.
India has made strong data-driven growth in terms of PPP (Purchasing Power Parity). Purchasing Power Parity or PPP refers to the economic theory used for comparing the relative value of currencies between different countries or economies. It considers a common basket of goods and services in each country. India's PPP or Purchasing Power Parity accounted for about 8.3 per cent of the Global Gross Domestic Product or GDP in 2024. The same Purchasing Power Parity was at the mark of less than 3.5 per cent in the 1990s.
Currently, India is contributing to almost 17 per cent of the global economy, and the International Monetary Fund or IMF recently shared the data about the contribution to rise almost 20% in the upcoming five years. Now, the Indian economy is standing in the 4th position.
The significant rise of the service sector in the Indian economy also marked a phase of growth. Agricultural share in the Indian economy declined to 20 per cent in 2024 compared to the 30 per cent of 1990s. Moreover, the contribution of the service sector has grown to the mark of 55 per cent in 2024. This surge of the service sector is driven by massive sectoral investments, including IT or Information Technology, Finance, or Travel and Tourism.
India's base of educated middle class has become a prime source of leading the country in the realm of digital outsourcing. Behind these optimistic prospects, there's much to look at in the macroeconomic policy framework followed by India, such as the adoption of a flexible inflation target regime in 2016 as part of the monetary policy. Besides this, the financial sector reforms focused on expanding the banking capacity, and monitoring Non-Banking Financial Companies or NBFCs have contributed to this economic surge.
UNI SAS AAB
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
First Post
22 minutes ago
- First Post
Indian millers, rice exporters eye windfall as Bangladesh plans to import 9 lakh tonnes
Indian rice millers and exporters are upbeat about Bangladesh's 'plan to import 9 lakh tonnes of rice', anticipating a boost in demand and better prices for the cereal, stakeholders said on Sunday. read more Indian rice exporters and millers are optimistic about a rise in demand and better prices following Bangladesh's plan to import nine lakh tonnes of rice, industry stakeholders said on Sunday. India, which accounts for 46% of global rice exports, is likely to be the biggest beneficiary of the move due to its proximity, consistent supply, and competitive pricing. According to exporters, Bangladesh will import four lakh tonnes through government tenders and another five lakh tonnes via private traders. The early import plan comes amid concerns over crop losses from heavy rainfall affecting the Amon paddy season. STORY CONTINUES BELOW THIS AD 'Of the total import plan, 4 lakh tonnes will be procured directly by the Bangladesh government through international tenders, while another 5 lakh tonnes will be imported by private traders of the neighbouring country. The decision comes earlier than usual, amid fear of crop loss due to heavy rain that could impact Bangladesh's Amon paddy currently being sown,' Ricevilla Foods CEO Suraj Agarwal told PTI. Jai Baba Bakreswar Rice Mill Director Rahul Agarwal said the rice industry in the country, especially in Bengal, is well-positioned to benefit from the proposed plan by the Bangladesh authorities, and he did not foresee any diplomatic hurdle amid India's curbs on the import of garments and jute through the Petrapole border. 'At least 30-40 per cent of the private imports will likely be sourced from Bengal mills and traders. Bengal mills will also participate in the government tenders for 4 lakh tonnes. States like Bengal, Jharkhand, Andhra Pradesh, Odisha, and Bihar will benefit the most,' he said. Popular Indian rice varieties such as 'Swarna', 'Ratna', 'Miniket', and 'Sona Masoori' are expected to see price gains in both West Bengal and southern India amid the anticipated demand surge, he said. Prices of 'Swarna Mansoori' parboiled rice, now at Rs 29 per kg (ex-mill), may rise to Rs 31-32, while 'Miniket' variety currently being sold at Rs 41-42, could touch Rs 45 per kg in the coming weeks, Suraj Agarwal said. STORY CONTINUES BELOW THIS AD Bangladesh's early import plan reflects 'precautionary steps ahead of possible floods during the Amon season', the stakeholders said. Bangladesh has already procured 3.76 lakh tonnes of Boro paddy and 9.5 lakh tonnes of rice out of a 14 lakh tonne target, with procurement expected to conclude by mid-August. From next month, the country plans to expand its food-friendly programme to cover 55 lakh families, offering 30 kg of rice per month at Tk 15 per kg. Exporters believe the development will further strengthen 'India's position as Bangladesh's key rice supplier while firming up prices for low-to-medium rice varieties in the domestic market'. Visakhapatnam and Paradip ports are major ones for rice exports. With inputs from agencies
India.com
22 minutes ago
- India.com
WazirX Case: Big Development In Singapore As Users In India Look Forward To Fund Access; Development So Far
Almost exactly a year after a cyberattack on the cryptocurrency exchange WazirX that led to over $230 million in users assets stolen, the exchange has now claimed that Singapore High Court on 16th July approved a revote on its amended restructuring scheme, reported The Hindu. If the claim is true, this is a reversal from its earlier order issued from June 4, after new documentation submitted by Zettai, the exchange's Singapore-based entity. Case Background According to reports, the Singapore High Court has dismissed in June Zettai's proposed restructuring plan for WazirX. The platform has lost $230 million cyberattack in July 2024. The court cited concerns about regulatory compliance for the distributing company which was earlier suggested to be Panama based entity Zensui. However, with the latest hearing making the amendment that fund distribution will be carried out by FIU India registered entity Zanmai, the court has agreed to proceed with a revote for creditors with suggested changes in the scheme, said the exchange. The compromised wallet was jointly managed with a company called Liminal, and both Liminal and WazirX have since pointed fingers at each other over the vulnerability that was ultimately exploited by North Korean hackers. When the breach occurred last July, WazirX faced backlash for its delayed communication with users and for creating confusion by freezing their funds in the aftermath of the attack. In January this year, WazirX said it had frozen the first tranche of stolen assets, worth around $3 million. Despite being known primarily as an Indian crypto platform, WazirX took its restructuring efforts to the legal system in Singapore. There, it sought a moratorium to protect itself from legal claims during the reorganization. The initial creditor vote in favour of the scheme received approval rate of 93.1%. If the amended version gains similar support, Zanmai could begin distributing recovered assets within 10 business days of court approval. The company also announced that, to align with updated legal and operational standards, it has adopted a new structure under which the FIU-registered Zanmai India entity will handle asset distribution—once the court approves and sanctions the proposed Scheme. Indian Investors Await Justice The case attracted attention for its cross-border legal implications, with many Indian investors initially questioning why proceedings are being handled in Singapore. Many Indian investors have expressed frustration with the lack of prompt action from domestic authorities. With ongoing legal proceedings and market volatility, many investors remain anxious about recovering their crypto before values fluctuate further. Affected Indian users have been taking to X to vent their anger. One more Jumla or comment section off kr rakha h. Kaamp kyu rakhe ho#wazirx #india #crypto #pi #btc #eth #CoinDCX #scam — ViV Thakur (@vipanthakur126) July 17, 2025 crypto users just wants their funds BACK They're tired of your lies. They know how clearly you've exploited them, how many times you've hidden the truth You still haven't even made the real #WazirX PoR public & it's been 1 year now !!! — Ajay Kashyap (@EverythingAjay) July 17, 2025 What Is WazirX Case? In July 2024, WazirX, one of India's largest cryptocurrency exchanges, suffered a cyberattack in which hackers stole approximately ?2,000 crore worth of digital assets, said media reports. The breach occurred due to compromised devices on WazirX's side, which allowed unauthorized upgrades to the wallet's smart contract, bypassing security protocols. Following the attack, WazirX offered users partial recovery of assets (between 55%–85%), which many Indian users claimed was arbitrary and lacked transparency, said media reports. Affected users in India filed a class-action complaint with the National Consumer Disputes Redressal Commission (NCDRC), arguing that their contract was with WazirX's Indian entity, Zanmai Labs. The NCDRC dismissed the case, citing lack of jurisdiction and ambiguity over the legal status of cryptocurrencies in India. While other exchanges fully compensated users after a hack, WazirX didn't pay even 1. Instead, they keep shifting blame saying others are 'too big' or 'too small' to compare, while offering excuse after excuse. No refunds. Just PR and 'blah blah blah.'#WazirX #WazirxScam — Harish Varma (@Harishvarma08) July 19, 2025 The Delhi Police arrested a suspect involved in creating a fake account linked to the hack, but progress has been limited, and the court has recommended transferring the case to the Central Bureau of Investigation (CBI). The slow and indecisive response from Indian authorities has frustrated many WazirX customers in the country, with several questioning why the fate of their invested crypto is still being determined in a foreign court. Others are growing increasingly anxious to regain access to their assets amid fears of a market downturn, but the legal battle remains unresolved.
India Today
28 minutes ago
- India Today
Indian students lose Rs 1,700 crore to hidden bank fees in 2024: Report
When an Indian student boards a flight for New York, London, or Melbourne, they aren't travelling alone, not in spirit, and certainly not in sacrifice. Behind every young scholar is a family that has chosen to stretch its limits. They sell land, dip into retirement savings, take education loans, and pool family incomes. It's a quiet revolution carried out in living rooms, not while their story is familiar, a new cost has entered the picture, one not found in any college brochure or visa 2024, Indian families collectively lost Rs 1,700 crore, around USD 200 million, not to tuition fees or housing, but to hidden charges from banks. This figure, drawn from a report by Wise and Redseer Strategy Consultants, represents what was paid in exchange rate markups and banking fees alone. It is a cost invisible to most, but immense in its grasp the scale, consider this: the amount lost is nearly three times the budget of India's Chandrayaan-3 moon THE NUMBERS ADD UPOver 760,000 Indian students are currently studying abroad. Most rely on their families to send regular remittances to cover living expenses, tuition, and unforeseen report estimates that Indian households remitted between Rs 85,000 to Rs 93,500 crore (USD 10–11 billion) in 2024 for educational 95% of these funds are sent via traditional banks. The banks, in turn, apply an average 3-3.5% markup on currency processing fees and delays of 2–5 working days, and the impact is hard to a family sending Rs 30 lakh a year, this means Rs 60,000-75,000 lost to hidden charges, an amount that could cover several months of living expenses or a semester of STUDENTS ARE SAYINGPriyanka Agarwal, an Indian student in the United States, explains it plainly: 'The loan helped. But the forex service I used made all the difference. I didn't know how much we had been losing in earlier transfers until we switched.'Harusha, also in the US, points to the urgency of everyday life: 'My parents used to transfer money through the bank. It would take two to three days. But sometimes, I needed the funds immediately, for rent or emergencies.I switched to instant platforms, and it felt like a burden lifted.'Their stories echo a larger shift. Education-related payments now account for 75% of Wise's volume in India, just three years after the company entered the promise: mid-market exchange rates with no hidden fees, 12-hour average delivery time, and transparency in ISSUE OF TRUST AND TRANSPARENCYTaneia Bhardwaj, South Asia Expansion Lead at Wise, put it bluntly: 'Students today move fast. Their payments should, too. Five-day waits and surprise charges aren't just an inconvenience -- they're disruptions to education.'She adds: 'It's not just about efficiency. It's about fairness. When a parent makes sacrifices for a child's education, that money should reach where it's needed -- not disappear in invisible margins.'To address regulatory barriers, Wise also announced its plan to support education-related transactions made through loans, which may qualify for tax exemptions under India's updated TCS (Tax Collected at Source) rules.A BROADER ECONOMIC UNDERTONEIndia's outbound education economy is growing rapidly. In 2024, for the first time, India overtook China as the leading source of international students in the now account for over 30-35% of student enrolments in major study destinations. Just ten years ago, this figure stood at 11%.As education transforms into a key pillar of the Indian middle-class aspiration, remittance channels must story is no longer just about reaching top universities, it's about reaching there without bleeding dry on the the end, this is not just about banking or transfers. It's about trust. It's about making sure that every rupee sent carries the full weight of a family's hope -- not the burden of opaque families prepare to double their spending on education by 2030, the cost of financial inefficiency becomes a national that requires better systems, clearer regulations, and a renewed respect for what these families are trying to build, one tuition payment at a question isn't whether Indian students will continue to pursue global dreams. They will. The question is whether the system will let them do it without losing more than they already give.- EndsMust Watch
