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SERVICE INDUSTRY GROWTH: The service industry is growing very fast in today's world market scenario. In Indian context, we can see the impact of service sector growth upon (GDP) growth rate. India's GDP growth rate our Gross Domestic Product has been transformed from lower single digit to higher single digit over the last few decades. The rise in the GDP growth rate is mainly attributable to growth of the service sector. The high and spectacular growth potential offered by the sector is what makes investment in the service sector a promising proposition. The Indian services sector has grown at 7.5% annually since 1990, which has proven to be the main factor behind acceleration of the overall Indian GDP growth. Given the presence of the following factors, it is expected that the service sector will maintain or improve on this growth momentum. In the recent past services sector has become out of the major contributors of taxes to the Government of India.
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