Today, the Service Sector in India accounts for more than half of India's Gross Domestic Product. As per the data, the share of services contributes to 55.1% of the Gross Domestic Product, where as agriculture and industry shares 18.5% and 26.4% respectively. This shows the significance of service industry to the Indian economy & as service sector now records more than half the GDP marks a turning point in the development of the Indian economy & takes it nearer to the basics of a developed economy. There was marked increase of rate in the expansion of services sector in the 90s. Whereas the share of services in India's Gross Domestic Product increased by 21% points in the 50 years between 1950 & 2000, nearly 40% of that increase was concerted in the 90s.
Composition of Service Sector in India
In our country, the national income categorization given by Central Statistical Organization is followed. Service sector includes the following in the National Income Accounting in India:
1. Trade, hotels and restaurants
• Restaurants and Hotels
2. Transport, storage and communication
• Transport by other means
3. Financing, Insurance, Real Estate and Business Services
• Banking and Insurance
• Real Estate, Ownership of Dwellings & Business Services
4. Community, Social and Personal services
• Public Administration and defense
• Other services
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