.

Service sector has emerged as the largest and fastest-growing sector in the global economy in the
last two decades, providing more than 60 per cent of global output and, in many countries, an even
larger share of employment. The growth in services has also been accompanied by the rising share
of services in world transactions. In line with the global trend, service sector in India has also grown
rapidly in the last decade. Its growth has in fact been higher than the growth in agriculture and
manufacturing sector. It now contributes around 51 percent of GDP. In the trade mode, services
trade has also grown at the same rate as goods trade over the 1990s (i.e., about 6.5 per cent) and its
share in total trade has reached around 24 per cent. Services sector is composed of broad spectrum
of service providing entities spread throughout the Country. Economic Survey, 2011-12 observed
that “The services sector has been a major and vital force steadily driving growth in the Indian
economy for more than a decade. The economy has successfully navigated the turbulent years of
the recent global economic crisis because of vitality of this sector in the domestic economy and its
prominent role in India’s economic interactions”. The service sector has become a necessity because
of many reasons like the contribution of this sector is huge in Indian GDP. The share of total services
sector in India’s GDP (at constant prices), which is constituted by trade, hotels, transport, storage
and communications, banking, insurance, real estate, community and personal services, but
excluding construction increased from 28.5 per cent in 1950-51 to 31.8 per cent in 1970-71 and then
finally to 51.3 per cent in 2013-14. The services sector is also playing an important role sector in
raising the volume of exports in the country. Thus, India is moving towards a services-led export
growth in recent years. During 2004-05 to 2008-09 as per the Balance of Payment (BoP) data,
merchandise and services exports grew by 22.2 and 25.3 per cent respectively.

As I am saying that service sector is doing that much at the same time it is facing a lot
of issue in achieving its full potential. For example, our infrastructure is inadequate not only in rural
areas but also in urban areas. Power shortage and traffic congestions are very common in Bangalore,
the Silicon Valley of India. These effects the quality of services provided. Though service sector has
been fastest growing sector in the last decade and has contributed a lot in our GDP, it provides less
than 25% of the total employment. India has great potential in the tourism sector but there is a need
to create proper setup for attracting tourists. Foreign tourists often get harassed and cheated in the
hands of babus and officialdom, touts and conmen. Service sector cannot grow in isolation it needs
strong backing of others sectors, primary and secondary. In India, such backing needs to be
strengthened.

As Terry Eagleton said “It is capitalism, not Marxism, that trades in futures.” I am saying that
because service sector contributes a lot in development of a country but it is also a tool which serve
the purpose of capitalism. Along with this it also brings a lot of problem to the local areas. For
example, the coca cola case which is still going on since 2004 in karela where the company is using
unlimited water for its beverage making process which resulted in depletion in water level in that
area, which effected the farmers a lot. Tourism sector also affects us like every year nearly 6% of our
forest burn because of camp fire and other tourism activity. Low wages, gender discrimination, more
working hours and a lot of other issues is associated with this. Government also focusing on this
sector more in result the agriculture sector gets less attention and investment which we can relate
with the rate of farmer suicide in recent times.

To prevent this government should make strict policy which can prevent degradation of
environment and also exploitation of people in this sector. Also, it should give equal attention to
every sector, which will be helpful in overall development in the society and will lead to a healthy
environment.

Refrences
 Das, L., & R., Raut. (n.d.). Impact of changes in Service Sector in India in shaping the future of
Business & Society.
 Lawrence, A. T., Weber, J., & Post, J. E. (2007). Business and society: Corporate strategy,
public policy and ethics. New York: McGraw-Hill Higher Education.
 Jennymackness. (2016, February 20). The Role of the Service Sector in the Indian Economy.
Retrieved from https://jennymackness.wordpress.com/2012/01/12/the-role-of-the-service-
sector-in-the-indian-economy/
 Terry Eagleton Quotes (Author of Literary Theory). (n.d.). Retrieved from
https://www.goodreads.com/author/quotes/10283.Terry_Eagleton