Inclusive and Sustainable Development through Service Sector Growth in India

Abstract

The eleventh five year plan target of achieving inclusive growth envisages the involvement of people and their participation in the development process of all the three sectors of economy i.e. agriculture, manufacturing and service. As the economy grows the contribution of service economy becomes relatively more important. In 1991 when the policy changes were introduced by the government, globalization of Indian economy started with the opening of various sectors in view of creating and adding value to the GDP. In the age of globalization & societal transformation, the composition of GDP has witnessed shifting trends. Today India is projected as the most potential and growing economy of the world not only in terms of market size but also in terms of technological development thanks to the reforms which are responsible for the service led economic development. The growth experience of Indian economy has witnessed structural changes which are reflected in eleven five year plans. The growth and development in service economy during last two decades after reforms has been very thrilling as a consequence of the reforms adopted and implemented by the government. During 2000-09 period, the growth rate of services in India was 8.9% which is just next to China (10.5%). If this potential is properly tapped, the inclusive growth target can be achieved at a faster pace.

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