The Indian economy has made a paradigm shift from the agriculture to service based economy. Service sector has made headway in the last decade and is the booming sector of the India. This sector is contributing in strengthening the economy of the country and attracting the businesses to move towards it. It has contributed towards the country's gross domestic product, increased the exports, foreign investment and the employment. The reason for the growth of this sector is the advances in technology, increase in the per capita income which in turn has increased the demand of the consumer services making these services indispensable for the Indian economy. The changes in this sector are due to the emergence of the IT sector, globalization and dependence on the process of outsourcing. The service sector is more heterogeneous in nature as all the activities involved do not produce or modify the material goods. The services sector includes trade, tourism, transport, real estate, information technology, research and development, banking, insurance and education. The hand in hand growth of the industrial and service sector would result in the overall development of the nation. This study attempts to understand the impact of the service industry on Indian economy, a glance on the performance of the various service sectors, an insight about the right set of circumstances and hindrances with the industry. The service industry with all the positive factors can sustain for long and will frame a prosperous future for the business entities.
Economy, gross domestic product, employment, technology, income, globalization
