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Impact of Service Sector on Indian Economy:With Special Reference to Banking and Insurance Sector
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With more than 7% GDP growth rate, India is one of the fastest growing economies in the world and moving fast to become largest economy by 2020. The biggest contributor to the Indian economy is Service Sector with around 65% share in the GDP. Similarly, Banks constitute the most important subsector of the service sector. But underlying the growth of service sector is the industrial activity. Some service sectors are merely the enabler but are not in the main frame. It increases the efficiency and thereby increases the productivity. In this study, the main emphasis is on the impact of the Indian banks on the Indian economy. It also empirically establishes the degree of association between information technologies (IT) and the productivity of the Indian Banks.
Keywords
GDP, Indian Economy, NASSCOM, Service Sector.
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