The Role of the Service Sector in the Indian Economy

The service sector has transitioned from being a supportive industry to the primary engine of India’s economic growth, contributing approximately 55%–60% of the Gross Value Added (GVA). This paper examines the sector's evolution into a "high-growth, low-volatility anchor" for the nation. It explores the "servicification" of manufacturing, the impact of Artificial Intelligence (AI) on employment, and the sector's resilience amidst global geopolitical shifts. Through a multi-point analysis, the study evaluates growth drivers, structural challenges, and strategic recommendations to achieve the target of $1 trillion in service exports by 2030.