Our consumption sector is less than 1/3 of GDP and goods and services in retail thus need to grow even as Services are close to 60% of India's GDP. These numbers are 50% and 47% for China where the consumption extra boom is draggint he country into consistent "Heat wave conditions" Though our inflation is strong too, it is nmore rooted in imported inflation and in intractable supply side gaps in food and energy. However, all that advantage from an overarching services economy and a pin pointed inflation woodoo doll, is just enough to keep us away from a slowdown.

A real jump in growth which we have consistently failed to achieve can come only if our Services exports which have a nearly 40% surplus already can be tractably grown into a monster than the woodoo dolls we keep creating for other monsters. With $11 bln in exports and $7 bln in imported services, our services sector needs to be stronger in other bases after the first fillip from the It Outsourcing and BPO sectors. And that might become increasingly difficult for us given that only TCS and other basement bargain sellers or distres sellers are theonly ones growing in the current global economy! 

TCS grew its distress sales in disaster happy sectors like Telecom and High Tech and I do not think that is an enduring advantage, disasters ( esp of the bargain basement variety) having a habit of coming back to bite the 26.6% Net margin and 76% utilisation which incidentally is better than Infy. Also the first generatiuon guard has left at the other majors as well, Pramod Bhasin leaving Genpact with captive business capped at 50% from GE, Infosys living wihth 70% utilisation and 10% wage inflation(8-9%), and domain process transformations giving way to simpler telewriting and voice businesses from the US coming offshore. H! also remains unutilised with high penal fees and stricter enforcement by the US on immigration covers like India's other Outsourcing strategy..

The Services exports need to mean servicing the high end global strategy machine which adds value to local unemployment of 10-20% in developed markets, often because and consulting services depend on these markets as export destinations for our knowledge edge whether in Oil or Finance or other manufacturing and management disciplines. Our exports in services still lag the staple Gems and Jewelry businesses and others where we do not even have the depth of resources and are already importing more Oil, Coal and other Energy and mineral resources for domestic production 

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