Service sectors in India

Since the early 1990s, the growth process in India has been marked by a remarkable performance by the services sector. The experience of developed countries suggests that growth in the services sector followed the growth of the industrial sector. However, India's experience in this regard is somewhat different. The sectoral shift in favor of the services sector over the last two decades has taken place in the face of an almost stagnant share of industry and a reduced share of agriculture in GDP. In fact, it was the growth performance of the services sector during the 1990s which sustained the overall growth of the Indian economy, particularly in times of adverse agricultural shocks and industrial slowdown.