Role of services sector in Indian economy

The emergence of India as one of the fastest growing economies in the world during the 1990s is attributable to the rapid growth of its services sector. In the process of economic development, a simultaneous growth of primary, secondary and tertiary sectors has been historical, but the high growth of services sector is phenomenal in recent decades, largely due to the development of sophistication in the information technology. In alignment with the global trends, Indian service sector has witnessed a major boom and is one of the major contributors to both employment and national income. This is the most promising sector as to creating new employment opportunities in sectors like Telecom, Travel and Tourism, Retail, Leisure and Entertainments, Research and consultancy, Education and Healthcare to name a few. The rise in the service sector's share in GDP marks a structural shift in the Indian economy and takes it closer to the fundamentals of a developed economy. Some economists caution that if the service sector bypasses the industrial sector, economic growth can be distorted. The service sector growth must be supported by proportionate growth of the industrial sector; otherwise the service sector grown will not be sustainable.