Since the late 1990s, the Service sector has been the engine for growth in India. It expanded with double digit growth from the year 2000 to 2008. Service sector started showing slow down since 2010 because of the global slowdown. At present many among us hold views that the sector has reached its saturation level. Economic survey 2017 dropped a trend of including an independent chapter on services. Though, this doesn’t show apathy of the government towards this sector. Instead, there are many reforms in the pipeline or under execution to further boost this sector.
This sector still has huge potential & is the only answer to India’s many serious problems; unemployment & low wages are among the serious problems which can be answered through growth in services. There are many myths about this sector which need clarification before discussion on growth possibilities.