Abstract
The paper examined the linear and non-linear trends of the share of the service sector as a percentage of GDP in India during 1960-2021 using the Regression Analysis and the Hamilton Regression Filter Model. It also studied the relationship between the service sector share and FDI, trade, total debt service and Inflation in India during 1970-2021. The paper verified the convergence of net state value added in services of Indian states from 2004/05-2021/22. The paper found a significant upward linear trend, and in nonlinear cases, the share of the services showed cycles, cyclical trends and seasonal variations. The share of the service sector positively affects trade, total debt service, inflation of the economy and FDI. The net state value added in services showed significant Sigma convergence and insignificant Beta convergence from 2004/05- 2021/22.
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