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Service Sector in India- A SWOT Analysis

Dr. Bhanu Shankar
Associate Prof., National P. G. College, Lucknow.
Abstract
The services sector covers a wide range of invisible and heterogeneous products and
activities and plays a vital role in the growth of a wide range of industries. It is a major employment
and income generator in many countries and has both forward and backward linkage with a number
of industries. The growth of services sector has gained momentum in India in recent years.
Trade in services in India has been growing rapidly since 1991, following significant
domestic liberalization on the one hand and access to growing overseas market for services, on the
other. Today, the services sector in India represent an essential component of competitive, knowledge
based economy, accounting for approx. 59.6 percent (See Economic Survey, 2012-13) of GDP in
2012-13.
Advances in information and telecommunication technologies have expanded the scope of
services that can be traded across border. Due to such rapid growth in services exports, India has
succeeded in making a dent in global markets more rapidly for services than for goods.
The emerging services trade sector in India such as financial services, telecommunications,
and IT services clearly possess growth potential. In other words, compared to other sectors, Indias
comparative advantage and specialization have been transformed from labour-intensive service trade
to technology and knowledge base service trade.
This paper attempts to analyse the performance, challenges, opportunities and future
prospects of the Indian service sector.
1. Introduction
In todays world of unlimited wants, no nation by itself can produce all the goods and services
which its people require for their consumption. Countries differ in terms of national resource
endowments, climate condition, mineral resources, labour and capital resources. The basis of
international trade is the gains of profit to be made from exchange of goods and services. If there is no
gain to be obtained, there would be no such trade between countries.
The rapidly rising share of service sector is definitely emerging issue in developing countries,
because it has been a major source of revenue since economic reform. Growing participation of
Service sector in international trade and liberalization in this sector is making an attention of
developing countries. In other words, it can be said that, this sector is like a magical key for
developing countries which has a capacity of erasing disparities.
Need was now felt for organization which would replace GATT and may succeed where
GATT had failed globalization and liberalization. World Trade Organization (WTO) was thus born in
1995. Various ministerial round of WTO have increasingly led to great liberalization in trade in
services. The Uruguay Round broadened the scope of multilateral trade negotiations to include
services. Services sector negotiations were conducted on a separate track from those on goods, under
the aegis of the Group for Negotiations on Services (GNS).

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The emergence of India as one of the fastest growing economies in the world during 1990 is
attributable to the rapid growth of its services sector. During 1990 the Indian services sector grew at
an average annual rate of 9 percent, contributing to nearly 60 percent of the national GDP. At the
same time Indias export of services displayed on of the fastest rate of growth in the world over 17
percent per annum in the 1990 and grew two and half times faster than the domestically focused part
of the services sector.
Over the past decade, India has made considerable advances in reducing the role of the state
in provision of the key infrastructure services and opening services industries to domestic and foreign
competition in telecommunications, banking, insurance, business and health services. Although the
gains are hard to quantity, these reforms have undoubtedly produced economic wide benefits both in
terms of Sectorial efficiency and growth performance.
2. Objectives of the Study
The main objectives of the study are:-
To compare the growth of the services sector during the pre-reforms and post-reforms period.
To study the growth of services sector vis-a vis other sectors of the economy.
To analyse the strengths of the services sector and the challenges facing the sector.
3. Source of Data
The analysis has been done on the basis of secondary data derived from government publications like
Economic Survey and from Central Statistical Organization (CSO).
4. Research Methodology
Time series data analysis technique has been used to study the trend analysis. Comparison of growth
of services sector vis-a-vis other sectors has been done on percentage basis. Also correlation and
regression analysis may be used wherever necessary.
5. Genesis of Service Sector
There exists an inconclusive debate on conceptualization of services which began with the
classical economists who characterised services a product of labour that perish at the moment. The
labour is performed, giving services an air of intangibility and transistorises. Here we are giving a few
ideas related with definitions and categories of services.
The earliest attempt to define services was made by Hill (1977) who argues that Goods and
services belong in different logical categories. He focussed on the fact that producer cannot
accumulate a stock or inventory of services stressing that service must be consumed as they are
produced unlike goods that can be produced and then be stored.
Bhagwati (1984) argues that services can be divided into two categories; first this that necessarily
require the physical proximity of the user and the provider; and second, those that do not essentially
requires this though it may be useful. Services that require essential physical proximity have been
further categorised into three groups that are:
a- Mobile provider and immobile user, e.g., shifting labour to the construction site in other
country.
b- Mobile user and immobile provider e.g., Hospital services
c- Mobile user and mobile provider, e.g. lecturers, haircuts, etc.

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However it has been argued that services for which physical proximity is inessential, i.e., the long
distance services, are on a rise due to technical progress that make it possible to provide services
without physical proximity between provider and the user of the services does lead to greater
efficiency.
For the purpose of classifying international transaction in services the most commonly used
classification is provided by Sampson and Shape (1985) and modified by Sapir and winter (1994).
1- Services transaction without movement of both the receiver and the producer of the service.
2- Services transactions for which the consumer travels across the borders to the immobile
provider.
3- Service transaction that are accomplish by the temporary movement of factors of production
across national borders while the receiver of the services does not move.
4- Service transaction by means of payment local establishment via a foreign affiliate of a firm
originating from a different country.
This classification has been adopted by World Trade Organization (WTO) established April 1994
under the General Agreement on Trade in Services (GATS). GATS envisage progressive
liberalization of trade and investment in services through periodic rounds of negotiations. The
Uruguay Round of negotiations which took place between 1986 and 1994, raise the scope of world
trade rules to cover services. The major thrust of this first round was to establish a legal framework of
rules and disciplines to cover services trade. Most difficult part of these multilateral negotiations,
reducing barriers and modifying the government regulations left for future round, which takes place at
every five year. First round of service sector negotiations was proposed for 2000.
The classification, (Sapir and Winter, 1994) adopted by WTO Under the general Agreement on Trade
in Services (GATS), the agreement applies to four mode of supply
Mode 1- Cross border supply of services (not requires the physical movement of suppliers or
costumer)
Mode 2- provision implying movement of the consumer to the location of the supplier
Mode 3- Commercial presence
Mode 4- Movement of natural persons.
The commitment process under GATS is characterized by a high degree of discretion and
flexibility. There are three types of commitments- namely full commitment (which means that no
restrictions are imposed), partial commitment (which means that some limitations are imposed) and
unbound commitments (which means no commitments are made) GATS are also consists of various
provisions and annexes which provides the overall framework and discipline to guide the negotiations
and the liberalisation process in the service sector.
The inclusion of the GATS, which brought service trade in to the multilateral framework of
trading rules, was one of the most significant achievements of the Uruguay Round. The GATS offers
for services trade the same ability that arises from mutually agreed rule, binding market access, non-
discriminatory commitments that the GATT has provided for goods trade over the last five and half
decades.
6. Performance of Indias Trade in Pre-reform Period

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On the eve of the planning, foreign trade of India shows an excess of imports over its exports.
The annual average value of imports during the first plan period was Rs.730Crores and that of export
Rs.622Crores. Trade deficit was largely due to programmes of industrialization which push-up the
imports of capital goods.
During the second plan, due to heavy expansion and renovation of railways and
modernization of many industries, imports of India further increased more which made foreign
exchange of India worse. Although devaluation of rupee in 1966 was helpful in increasing the exports,
devaluation also produced its healthy effect in stimulating exports. Consequently, balance of trade
which was unfavourable during 1967-68 declined significantly during the next three years. In the
phase of 1972-73, the country was able to have favourable balance of trade for the first time since
independence. But the impact of this healthy development was soon lost in 1973-74 because of
several international factors which push up the price of petroleum products, steel and non-ferrous
metal. Consequently, deficit in trade balance of the order of Rs.432Crores appeared in 1973-74.
The hike in price of oil seriously affected the pattern of trade throughout the world. During
the fifth plan period, value of imports reached at high level. Indias exports which rose day by day,
due to high rise in exports trade surplus emerged for the second time. On account of the further
increase in the price of petroleum products by OPEC, the import bill rose up over to Rs.12.549Crores
in 1980-81. During the period of 1983-84 deficit was growing rapidly. A huge annual average trade
deficit of the order of about Rs.5716Crores was witnessed during the sixth plan.
During the second plan, policies of indiscriminate liberalization provided only the problem of
drastic deficit in our trade balance. The table shows, tremendous gap between Indias imports and
exports of merchandise.
Table:1- Value of Exports and Imports in Rupee Crores (1950-51 to 1990-91)
Year Exports Imports Trade Balance

1950-51 1269 173 -4

1960-61 1346 2353 -1007
1970-71 2031 2162 -132
1980-81 8486 15869 -7383
1990-91 18143 24075 -5932
Source: Government of India, Economic Survey.
Above data shows the tremendous rate of growth of imports on one side and a much lower
rate of growth of exports since 1980-81 on the other. The trade deficit was more than offset by the
flow of funds under net invisibles during the fifth plan period. During 1985-86 and 1989-90, the total
trade deficit amounted to Rs.54,204 Crores for the seventh plan. This deficit was much adjusted by
the invisible accounts in trade balance.
Expansion of services worldwide led to services being regarded as engine of growth. This
sector compensates the deficit of BoP on current account during 1980-90. The dominance of services
sector in the growth process is usually associated with the third stage of growth. During the 1980s and
1990s, services accounted for a share of about 70 percent of GDP in industrialized countries and about

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50 percent in developing countries. Growth in the services sector has been cyclical and more stable
than the growth of industry and agriculture.
Table:2- Sectoral Growth Rates (Average Growth in Percent)
Sector 1951-1980 1981-1990

Agriculture 2.1 4.4

Industry 5.3 6.8
Services 4.5 6.6
GDP 3.5 5.8
Source: Gordon and Gupta, 2003
A notable feature of the structural transformation of the services sector has been the growth of
skill intensive and high valued added sectors i.e. software, communication and financial services.
Some of the activities in the services sector are multidimensional, being a part of industry as well
services, such as information technology and construction.
The emergence of services as the most dynamic sector in the Indian economy has in many
ways been a revolution. Software and IT-Enabled Services including (call centres, design and
business process) have been playing an important role since 1980s. Although IT exports have had a
profound impact on the BOP, the sector remains a small component of GDP. Between1951 to 1990,
share of agriculture fell while the share of industry and the share of services increased from 15 to 27
percent. In the 1990s, share of services in Indias GDP climbed by about 8 percentage point while
share of industrial sector has been stagnant since 1990s.
Since 1991, we have got almost favourable situation in BOP, which could be possible only
due to trade of invisible goods. Current account which consists of visible and invisible goods was in a
very poor situation in 1980-90s. After the reform process the deficit in current account BoP can wipe
out with the help of invisible goods, which must be considered as the catalyst for growth of Indian
economy. In the same time period services tax was also introduced by the then Finance Minister
Manmohan Singh, which was implemented on three services, increases to 119 services in present-
time. To certain extant this tax is helpful in generating revenue and mitigating the deficit of
government of India.
7. Service sector and Growth of Indian Economy
After the reform period, India has obtained a fruitful position in trade by balancing the
difference between deficit and surplus. The deficit in BOP was not much favourable as it was
expected by New Trade Policy (i.e. NFTP 2009-14). With the help of given table we can see the
position of BOP after the reform period.
Table:3- Current account Transactions as a percentage of GDP at Current Market Price
Year Exports (E) Imports(M) Trade Balance

1990-91 5.8 8.8 -3.0

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1991-92 6.7 7.7 -1.0

1992-93 7.1 9.4 -2.2
1934-94 8.3 9.8 -1.5
1994-95 8.3 11.1 -2.8
1995-96 9.1 12.3 -3.2
1996-97 8.9 12.7 -3.8
1997-98 8.7 12.5 -3.8
1998-99 8.3 11.5 -3.2
1999-00 8.4 12.4 -4.0
2000-01 9.8 13.0 -3.1
2001-02 9.4 12.0 -2.6
2002-03 10.6 12.7 -2.1
2003-04 11.1 13.3 -2.5
2004-05 12.2 17.1 -4.8
2005-06 13.0 19.4 -6.4
2006-07 14.0 20.9 -6.9
2007-08 14.1 21.9 -7.8
2008-09 15.2 25.0 -9.8
2009-10 13.4 22.0 -8.6
2010-11 14.8 22.6 -7.8
2011-12 (E) 16.5 25.8 -6.5
Source: Economic Survey, Various Issues.
Business services were the fastest growing sector in 1990s with the average rate of 20
percent a year. Business services whose contribution was quite modest in the nineties, has a low base,
and expected to continue growing at a very high rate and likely to contribute more significantly to
services growth in the future. Communication sector has also registered the growth of 14 percent a
year during the 1990s which was due to telecom revolution.
Another growing sector was banking sector during 1980s to 1990s, which jumped from about
7 percent to 13 percent in the 1990s. The contribution of banking to service sector growth was larger
than that of communication sector. The growth of services sector continued to be broad based. Among
the subsectors of services transport and communication has been the fastest growing with growth
averaging 15.3 percent per annum during the tenth five year plan period.
Services have been liberalized; most have typically experienced higher growth rates. Areas
such as business services, communication, banking and insurance, which have been liberalized, have
achieved higher growth rates. Developing countries are becoming global players in various services.
They are increasingly emerging as important destinations market for services investment as they open
up their economies to foreign investment.

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The service sector is the dominant sector in most developed economies and in some
developing economies like India. A striking feature of Indias growth performance is that
between1950-1990; agricultures share in GDP has declined by about 25 percentage points while
industry shows stagnant rate. The share of industry has established since 1990 and consequently the
entire decline in agriculture has been picked up by the service sector. The share of services in India
GDP at factor cost (at current prices) increased from 33.5 percent in 1950-51 to 55.1 percent in 2010-
11 and to 56.3 percent in 2010-11. If construction is also included, the service sectors share increases
to 63.3 percent in 2010-11 and 64.4 percent in 2011-12. With a 16.9 percent share, trade hotels and
restaurant as a group is the largest contributor to GDP amongst the various services sub-sectors,
followed by financing insurance, real estate and business services with a 16.4 percent share.
Community, social and personal services with the share of 14.3 percent is in third place. Construction,
a border line service inclusion, is at fourth place with an 8.2 percent share.
The CAGR of the services sector GDP was 10 percent for the period 2004-05 to 2011-12. It
has clearly outgrown both the industry and agriculture sector. In 2011-12 and 2012-13, in relation
with the general moderation in the economy, the growth rate of services sector also decline while the
services sector generating employment in the economy is high probably below the desired level.
The slowdown in the rate of growth of services in 2011-12 and particularly in 2012-13, from
the double digit growth of the previous 6 years, contributed significantly to slow down in the overall
growth of the economy. While some slowdown could be attributed to the lower growth in agriculture
and industrial activities, given the backward and forward linkages with services, lower demand from
the rest of the word could also have played a part.
Table:4-Share of different services categories in GDP at factor cost (Current Prices)
2006-07 2007-08 2008-09 2009-10@ 2010-11* 2011-12 **
Trade. Hotels and 17.1 17.1 16.9 16.6 16.9 25.2 #
Restaurants
Transport, Storage 8.2 8.0 7.8 7.8 7.7
and Communication
Financing, insurance, 14.8 15.1 15.9 15.8 16.4 16.9
real estate and
business services
Community, Social 12.8 12.5 13.3 14.5 14.3 14.2
and Personal services
Construction 8.2 8.5 8.5 8.2 8.2 8.1

Total Services 52.9 52.7 53.9 54.7 55.1 56.3

(excluding
construction )

Total Services 61.0 61.2 62.4 63.0 63.3 64.4

(including

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construction)
Source: Computed from Central Statistical Office (CSO) data
Notes: @ Provisional Estimate (PE), * Quick Estimates (QE), ** Advance Estimates (AE), # Includes
the share of both Trade, Hotels, and restaurant and transport storage and communication for 2011-
12
As per of balance of payment (BOP) data of the RBI, Indias services export grew at a CAGR
of 20.6 percent during the period 2004-5 to 2010-11 as compare to the 19.7 percent CAGR of
merchandise export in the same period. Within the services sector, CAGRs of financial services (52.8
percent) and business services (29.2 percent) were higher, while that if software at 21 percent was
low. In terms of size, software is a major services export category accounting for 41.7 percent of total
services exports in 2010-11. The CAGR for import of services was 20.2 percent compare to the
CAGR of merchandise imports at 21.4 percent among services imports, non-software services (22.6
percent) and transportation (20.5 percent) has high CAGRs. The overall openness of the economy
reflected by total trade including services as a percentage of GDP showed a higher degree of openness
at 50.3 percent in 2010-11 compare to 25.4 percent in 1997-1998. Openness indicator based only on
merchandise trade is at 37.5 percent in 2010-11 compare to 21.2 percent in 1997-98
This sector plays a major role in the development of most of the developing countries,
specifically for China and India, its importance increases rapidly. As we know very well that world
trade in services is dominated by the developed countries, emerging economies like china and India
are now playing an increasing role. India is the most dynamic exporter if services and ranked seventh
in the world in both export and imports of services in 2010.
The service sector liberalization has been an integral part of Indias reform process since
1991. The opening of key sectors such as tele-communication services has greatly facilitated Indias
penetration of world markets in IT and business support services. Since liberalization era, services
sector has been growing at a higher rate, behind this growing size of this sector there are many
reasons find out of which some are given below-
8. Strength at a Glance
Economic affluence is one of the key factor is the growth of services sector. In India recently
the size of the middle income people is raising fast and the percentage of the very poor household
declining.
Cultural Changes
Emergence of the nuclear family system in place of the traditional joint family system creates a
demand for a host of services like education, health care, transport, and tourism.
IT Revolution
IT became one of the key service businesses of the country. India has the largest software skilled
population in the world. The domestic as well as the international market has grown substantially.
Telecom Services
The phenomenal growth of the information technology (IT) industry in India has brought to the fore
the growing importance of the country as a knowledge powerhouse. But this competitiveness is

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restricted to the services sector. In fact it is the sector that is increasingly contributing to the higher
growth rate recorded in the country.
An interesting dimension of high technology production in India is that this capability is largely in
the realm of services. Communications is the fastest growing sector in Indias economy. The average
compound rate of growth of the economy works out to 20.03 percent per annum since the turn of this
millennium. No other sector of the economy has clocked such a rate of growth. The sector accounts
for about 4 percent of the GDP and the recent high rate of growth has contributed to about 11 percent
of the growth in overall GDP of the country.
Accounting services
In an era of rapid globalization, the accountancy sector plays a vital role in supporting firms in the
collection, retention and dissemination of financial information. It also helps firm by providing advice
and assistance on taxation matters, financial reporting and commercial strategy.
Like many other sectors in service, it is difficult to accurately judge the market size of the
accountancy services sector. Indias biggest advantage in this sector is the huge number of trained
accountants it produce every year and the relatively low wages in the country. Greene (2006)
estimates that while the hourly wage rate for an accountant is $ 23.35 in USA, it is around $ 6 to 10
billion in India. Familiarity with international accounting standards and expertise of the English
language are other skills, which have helped Indian accountants. India has very strong export interest
in the accountancy and auditing sector because of its labour endowment and cost advantage.
Legal Services
Any assessment of the legal services in India must necessarily begin with the caveat that reliable
statistical data on the size, composition or even growth rate of this sector are virtually non-existent.
Having said this, it is widely accepted that legal services sector especially corporate legal services has
grown by leaps and bounds in the last 15 years. India boasts of a burgeoning market with innumerable
firms offering high quality services in banking and finance, company and corporate transactions,
company and antitrust, corporate real estate, dispute resolution, equity capital markets, intellectual
property, IT and e-commerce, life sciences, mergers and acquisitions, taxation, media and
telecommunication fields.
Health Services
Traditionally, health services in most countries have been perceived as the responsibility of the states.
Therefore, health care services were seen essentially as public welfare services and were not regarded
as commercial in nature. However in many developing countries, the public health system could not
meet the demand for health care services. In this context it was felt that private participation in the
health sector might be solution for meeting the demand for adequate health care services. India has
emerged as an important supplier of health services. Currently India has autonomously liberalized its
health sector to a greater extent them required under its GATS commitments.
Higher Education Services
Driven by technological change, the knowledge based sectors now create a large proportion of
wealth. These sectors also employ a large number of people. Most people participating in knowledge
based economy require higher education qualification. A majority of jobs created in the past few years
required higher education qualifications.

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Higher education in India has undergone a major transformation over the past two decades.
There are several factors responsible for this, including a rising demand for higher education resulting
from an increase in population improvements in school education, growth in aspiration of the people
and the changing structure of the economy that requires new and varied kind of skills. The higher
education in India is very large and highly fragmented. In terms of enrolment, it is the third largest
system in the world- after China and Unites States. It consists of nearly 18000 institutions.
Tourism, including Hotels and Restaurants
Tourism is not only a growth engine but also an export growth engine and employment generator. Its
contribution to Indias GDP and employment in 2007-08 was 5.92 and 9.24 percent respectively as
per Tourist Satellite Account Data. In India the tourism sector has witnessed a significant growth in
recent years. During the period 2006 to 2011, the CAGRs of foreign tourist arrivals (FTA) and foreign
exchange earnings (FEE) from tourism (in rupee terms) were 7.2 percent and 14.7 percent
respectively. FTAs in India during 2010 were 5.78 million compared to 5.17 million during 2009
posting a growth of 11.8 percent, much higher than the growth of 6.5 percent for the world in 2010.
Challenges of Service Sector

Undoubtedly, services sector in India has been raising its contribution in GDP since 1991.
This sector is really a growth engine not for only economy for many states. This sector is net foreign
exchange earners with export of some services. It is also the major FDI attracting sectors with five
services topping the list of sectors attracting FDI to the country. The services sector has been a major
contributor to Indias GDP and growth. It is the second largest employer after agriculture. Indias
trade in services have increased overtime and services accounts form the largest share in Indias
Foreign Direct Investment (FDI) inflows and outflows.
Although growth of Indias services sector, its contribution to GDP, and its increasing share
of trade and investment has drawn global attention, yet there are many challenges for this sector in
India, which are preventing the way of growth of Indias economy. The share of services sector in
Indias total trade is higher than the global average and India is among the top 10 WTO member
countries in services exports and imports. However the increase in employment in services has not
been commensurate to share of the sector in GDP. Moreover, majority of the people employed in the
service sector are concentrated in the unorganized sectors, which offer lower salary and limited job
security. Hence, the quality of employment in this sector is a cause for concern. There are other areas
of concern such as Indias services sector growth and export of services is lower than that of China.
One reason for accompanied growth of employment is the slow rise in productivity growth on
services as compared to the manufacturing sector. Different explanation have been put forwarded for
slow growth of productivity in services as compared to goods, including the argument that when it
comes to cost reduction fir existing products or services , technological change is more frequent and
more powerful in its effects in the commodity sector (Kuznets 1957). It has also been argued that
many services are subject to diminishing returns and because of their labour intensive nature the
services sector activities cannot be made more efficient through capital accumulation, innovation or
economies of scale.
Other major challenges of this sector are lower productivity compare to other sectors.
Fallowing Kaldor (1966) who emphasised that labour in non-manufacturing sector is less productive,
many studies have attempted to examine the lagging services sector productivity.

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Labour productivity in services compared to goods would imply that the shift of the economy
towards larger services sector might lead to reduction in the national rate of productivity
improvement. However these nations have led to alternative arguments for lower productivity in
services. Two important argument put forward are :(a) greater investment has been done in new
technology in services sector and this may take time to lead to productivity of services is a product of
miss measurement of output in services since an increasing portion of output is not captured in the
basic statistics.
Other challenges of service sector are restrictive policy in Mode 4. As we know very well that
India has comparative advantage in Mode 1 (cross border supply) and Mode 4 (movement of natural
persons). Other developed countries are making a lot of developing countries for the trade in Mode 4.
To increase in trade activities in Mode 4, firstly we should take some domestic reform because other
developed countries have a lot of excuses to prevent trade in Mode 4. One of the major barriers is
entry in mode 4 is the lack of recognition of qualification and licensing requirements.
In short all above restrictions is making hindrance to earn large amount of profit. Firstly, we
have to erase the blunder mistake which come from origin in order to make large amount of profit
which will be helpful in generating more amount of foreign countries.
9. Conclusion

At the last of the paper I would like to discuss the various feature of the services sector in
India. At it is explained in the paper about the growing size of services sector more rapidly since
1990s. Yet there are many lacuna of this sector. Structural transformation in India has taken place
earlier and no doubt this transformation brings a miracle change for our economy. But this change is
not as much beneficial as it should be because of its limited area. As it has already discussed that very
few sectors like IT and banking are taking part most widely in the growth of GDP as the part of
services sector.
Its mean that limited scope of the territory sector in India has to increase anyhow so that it
can blossom our economy with its spill over effects. Another main and most attentive lacuna of this
sector is low rate of employment generation compare to revenue generation, which should be erasing
for getting real growth rate.
Besides this, other important fact about this sector is that by the taxing, this sector is
generating a huge part of revenue, there are 127 sectors come under the service taxation. So this
feature tells us that somewhere territory sector is like a pillar of the Indian economy, which has been
being the reason of balancing internal as well external sector since reform period.
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corporate Professional, Chartered Secretary, Volume XXXIV, No.1-184
2. Economic Survey, Government of India, 2011-12.
3. Economic Survey, Government of India, 2010-11.
4. Sodersten, B. & Reed, G., (2004), International Economics, MacMillan Press Limited.
5. Krugman, P. & Dbstfeld, M., (2000), International Economics, Theory and Policy, 5th Edition,
Published by Addison Wesley Longman.
6. Mannur, H. G., (2009), International Economics, 2nd Edition, Vikas Publishing Pvt. Ltd.
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