Growth and Performance of Service Sector in India

Abstract

The services sector is the dominant part of the Indian economy accounting for about 59 per cent of Gross National Product especially the Indian Information Technology (IT) and Information Technology enabled Services (ITeS) .The industry has not only transformed India’s image on the global platform, but also fuelled economic growth by energizing higher education sector (especially in engineering and computer science). The industry has employed almost 10 million Indians and hence, has contributed a lot to social transformation in the country. Furthermore, Indian firms, across all other sectors, largely depend on the IT & ITeS service providers to make their business processes efficient and streamlined. Indian manufacturing sector has the highest IT spending followed by automotive, chemicals and consumer products industries. Indian organizations are turning to IT to help them grow business in the current economic environment. The paper, analyses the performance & growth of service sector especially IT and ITeS of India.