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Increasing Share In The GDP

The share of tertiary or services sector has increased from about one third of GDP in 1950–51 to more than half in 2009-10. In 2009–10, its share in the GDP was 57 percent. India is still a developing economy, so this figure is appreciable.

Providing Employment

Service sector comprised about 17.3 percent of working population in 1951. In 2007-08, around 25 percent of working population was dependent on service sector for occupation.

Providing Support To Other Sectors

Service sector provides support to agriculture and industries by providing a number of services in the form of financial services, transport services, storage services, distributive services, software and communication services and so on. No sector can perform and prosper in the absence of network of various financial and other services.

Contribution To Exports

Services exports from India comprise travel, transportation, insurance, communication, construction, financial services, software, agency services, royalties, copyright and licence fees and management services. Services accounted for 1/3rd of total exports in India (2009–10). In 2006, India’s share in world’s total services export was 2.7 percent compared to 2.3 percent in 2005. Indian services exports grew by 27 percent in first half of 2010–11. In the list of exporters of services (2005), India is ranked 12th.

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