Nature and Composition of Services Sector in India-A Time Series Analysis

The services sector is the backbone of the Indian economy, accounting for the majority of the country's gross domestic product (GDP). It contributes towards the development and growth of the overall economy to a great extent. Findings of the present study revealed that in India, there existed a long-term relationship between services and GDP. From1950-70 CAGR of GDP was found stable whereas it faced a declining trend in 1970–80 but the period of 2000–2013 witnessed a high growth. Despite being one of the world's fastest-growing economies, India still needs to reform itself more in order to attain high growth and long-term sustainability goals. There is an urgent need for good governance to remove the constraints and hindrances for developing services in India.