Is the Service-Led Growth of India Sustainable - IJTEF.pdfVIP

International Journal of Trade, Economics and Finance, Vol. 3, No. 4, August 2012 Is the Service-Led Growth of India Sustainable? Bharti Singh  the share of primary sector to GDP has decreased from 56% Abstract—Till the decade of 1990s many studies raised to 22% whereas the share of service sector has increased doubts about the sustainability of service-led growth in India. from 28% to 54%. The fall in the share of the primary sector Most often it was stated that growth in manufacturing is has taken 40 years that was achieved by the developed required to give a boost to services, employment growth, income countries in 100 to 150 years and the services sector has generation, and trade balance. It is now increasingly being realized that the resilience of the Indian economy is due to the grown at a rapid rate since 1990s [2]. The share of secondary resilience of the services sector. Numerous studies since 2000s sector has increased at a slow pace from 16% in the decade of have shown that services induced growth of GDP of India is 1950s to only 24% in 2000s. In the decade of 2000s the share feasible. The service-led growth model is sustainable not only of primary, secondary and service sector were 22%, 24% and from the economic perspective but from social and 54% respectively. environmental perspectives as well. To realize the maximum Th