Emerging Role of Service Sector in Indian Economy

Service sector is a rapidly growing sector around the world. It has become more significant in recent years as modern technology has permitted new means of providing services across the world. It has become the lifeline for the social economic growth of a country as it is contributing significantly to GDP growth, employment, trade and investment. In economic growth and development, Indian economy has reached a level where there is a predominance of service sector. Service sector which is leading in terms of its growth and shares serves as an instrument of growth for Indian economic development. Service sector is essential for a developing country like India with a large and young population to produce quality employment. India requirements private investments in key infrastructure services such as energy, transport and telecommunications services. Service sector activities comprise transport, trade, commerce, communication, restaurant and hotel, banking and finance, health and education, tourism, share market, film industry, insurance etc. The present study provides an analysis of service sector in the Indian economy. This paper also makes an analysis of the Indian services sector through examining its growth and contributions in the GDP and Indian economy.