Contribution of Telecom Sector to Growth of Indian Service Sector: An Empirical Study

Abstract

Service sector plays a vital role in boosting an economy thus it is important to understand the role and contribution of service sector to the growth of economy. For more than a decade the sector has been pulling up the growth of Indian economy with great stability. The share of services in India's GDP at factor cost (at current prices) increased from 33.3% (1950-1951) to 56.5% in 2012-13. The services performance of the top 15 countries for the 11 year period from 2001 to 2011 shows that the increase in share of services in GDP is the highest for India with 8.1 percentage points. Thus, the present paper is an attempt to examine the trend of growth of exports, imports of telecomm sector and its impact on the growth of telecom sector with the help of regression model.