Service Sector Scenario

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Indian Scenario The share of agriculture sector, which constituted over 50 per cent of the GDP in 1960’s, has now come down to around 24 per cent in 2000 - 2001. There has been substantial increase in the manufacturing sector but the bulk of transformation has been in the service sector. The weightage of service sector is an indication that in future, India's GDP growth will be influenced considerably by the service sector. According to a report of the IMI, the service sector in India has consistently outperformed the rest of the economy in recent years, and that too by a wide margin, since the 1980s in response to the reform programmes undertaken and after 1991 in response to the various liberalization and stabilization measures. The report…show more content…
The rate of growth of the share of the tertiary sector picked up dramatically from the 1980’s and peaked during the last decade of the twentieth century. It overtook agriculture as the highest earning sector around 1985, and it now accounts for 47.9 per cent of the GDP. The services sector today is nearly as big as the primary and secondary sector put together. It is the fastest growing sector, with an annual growth rate of 8 per cent per annum. In the 1990’s one in every two Indian earned his livelihood by providing services. With best incomes and best talents, the service sector is now the showcase of the Indian…show more content…
Reduced restrictions on private sector involvement have also played an important role in the growth of this sector, as a result of which the real annual growth rates in services have generally, outperformed the overall GDP growth rates and the trend is likely to continue in future. The growing importance of the service sector in India has also been acknowledged by the stock markets. The higher growth of employment in service sector is partly because of the growth of economy and technological developments and a smaller proportion of work force needed by the manufacturing sector. With the changing pattern of Indian economy, a shift in employment pattern is bound to happen and the demand for specialized services and professionals like bankers, accountants and lawyers are bound to

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