Service Sector - Role Played in Economic Development

Abstract

The services sector has grown phenomenally over the past decades and accounts for more than 60 per cent of gross domestic product (GDP) in the developed economies. The most marked change in the structure of developed economies in the twentieth century, particularly in the later half, has been the transformation from an emphasis on the manufacture of physical goods to the production of intangible services. The work force distribution is also more for service sector. The present study is to identify the role played by service sector in the economic development of any country. India is no exception to this paradigm change. While a little over a decade ago the three main sectors of economic activity-agriculture, industry and services- had roughly equal shares in the GDP, the service sector has now left the other two far behind. According to the national income estimates for 2020, the GDP is 54.77% and 32.33 % share in total work force distribution. The study relates to the service sectors share in GDP and through which increase in Employment rate in service sector. The study also enlightens upon the importance of services in Banking sector, a major contributor in Services sector. Banking is considered as mirror of economy. The study is based on mainly on secondary data from the websites, international journals, and blogs. The study is descriptive and various descriptive statistical methods are followed for better analysis of the data.