Service Sector Contribution to Economic Growth

Abstract

The growth of service sector in India has been unusually rapid; it started 15years ago from unusual(y low levels. The services sector has played a pivotal role bi accelerating the economic growth in India. Growth in services picked up in the 1980 sand accelerated in the 1990 s. Since then. it has become a dominant contributor to economic growth. This paper presents a conceptual framework of the service sector in India that focuses on analyzing the performance of service sector & its contribution to growth. employment & GDP in the Indian economy. It also makes a comparison of the performance of service sector in India with rest of the world. The prime movers of the growth in services have been trade. hotels and restaurants, communication and banking and business services such as computer related services, renting of machinery, accounting and research development with recorded growth rates above IO per cent on the average from the 1990 s.