Indian Service Industry


Services GDPs

  • The share of services in India’s GDP at factor cost (at current prices) increased from 33.3 percent in 1950-51 to 65 percent (including construction) in 2012-13 as per Advance Estimates (AE).
  • With an 25.1 per cent share, trade, hotels, and restaurants as a group is the largest contributor to GDP among the various services sub-sectors.
  • Financing, insurance, real estate, and business services with a share of 17.2 percent is in second place.
  • Community, social, and personal services with a share of 14.3 per cent is in third place.
  • Construction, a borderline services inclusion, is at fourth place with an 8.2 per cent share.
  • The CAGR (Compound Annual Growth Rate) of the services sector GDP in 2011-12 and 2012-13, is 8.2 per cent and 6.6 per cent respectively.
  • India showed the fastest service sector growth with a CAGR (Compound Annual Growth Rate) in 2015-16 of 8.6%.
  • As per World Trade Organisation (WTO) data, India’s commercial services exports increased from US$ 51.9 billion in 2005 to US$ 155.3 billion in 2015, taking its share in global services exports to 3.3 per cent in 2015 from 3.1 per cent in 2014.

Services Sector contribution to the Indian Economy in 2017

Sector Wise GDP Share

State-Wise Comparison of Services

A comparison of the share of services in the gross state domestic product (GSDP) of different states and union territories (UTs) in 2011-12 shows that the services sector is the dominant sector in most states of India. States and UTs such as Chandigarh, Delhi, Kerala, Mizoram, West Bengal, Tamil Nadu, Maharashtra, Nagaland, and Karnataka have higher than all-India shares.

Chandigarh tops the list with a share of 85 percent followed by Delhi with 81.8 per cent. Other than Arunachal Pradesh (33.8 per cent), Chhattisgarh (36.7 per cent), and Sikkim (37.0 per cent), the share of services in the GSDP in all other states is more than 40 per cent.