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Growth Of Service Sector During Planning Period

The service sector now accounts for more than half of India’s GDP: 57 percent in 2009–10. If we analyze growth rate in the service sector, we find that it grew by 7.54 percent per annum in the Eighth Plan and around 8.1 percent per annum in the Ninth Plan. The growth rate of service sector turned out to be around 9% per annum. The 11th plan aims at an annual average growth rate of 9.4% for service sector.


The tourism industry is growing very fast and has the potential for growing still faster.

The other notable segment of India’s service sector is fast growing financial services segment. This sector is undergoing liberal reform processes including introduction of an element of competition, cutting off the barriers and allowing entry to foreign companies.

India has the 3rd largest scientific and technical manpower in the world. India’s consultancy professionals possess the capability to provide expertise in sophisticated areas like information and technology, advanced financial and banking services etc. to developed countries like USA, UK, France, West Germany and Australia.

India’s health services, super-specialty hospitals specializing in both modern and traditional Indian medicine systems (like Ayurveda, Unani, and Nature care) supported by state of the art equipment, are attracting patients from across the world.

Education is another field which is not only a big segment of the services sector with the country but also a foreign exchange earner by way of NRIs, and foreign students enrolled in India.

Entertainment industry is another service industry which has grown very fast after independence.

IT enabled services, such as Business Process Outsourcing (BPO) have been growing rapidly (60–70 percent) in the recent past and will continue to grow.

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