Services sector swells in northern region: Report

Region in question comprises Delhi, Haryana, HP, UP, J&K, Uttarakhand, Punjab and Rajasthan

Economic activity in northern states is tipping in favour of the services sector, according to a report from business chamber CII.

The region in question comprises Delhi, Haryana, Himachal Pradesh, Uttar Pradesh, J&K, Uttarakhand, Punjab and Rajasthan. Issued on Wednesday, the report says their services sector contributed 56 per cent of the regional Gross Value Added (GVA) in 2014-15, from 49.2 per cent in 2011-12.

States in the region have also been gearing up over the past two to three years to bolster investments through specific incentives for the sector. As a result, the services sector has played a key role in regional growth, growing at a compound annual rate of 7.7 per cent during the period 2011-12 to 2014-15, it said.

Cemented by the fact that the region also accounted for 52.3 per cent of the total services sector in the country, as compared to only 19.3 per cent of the nation's agricultural and allied sector.

Services contributed 88.3 per cent of Chandigarh's GVA in 2015-16; it was 81.6 per cent for Delhi. J&K and Haryana also had the sector contributing more than 50 per cent of GVA growth. All other states, apart from hilly Uttarakhand, have such contributions at more than 40 per cent.