for such growth is an increase in investment in the economy. There are encouraging signs on both the growth and investment fronts in recent years. India is the second largest country in the world, measured by a population of purchasing power parity. It ranks among the top economies of the world and expects to become the third largest economy in the world by .
As with any growing economy the sectoral composition of GDP has been changing with the services showing an increased share of above per cent and that of agriculture declining to per cent. The services sector continued to be the mainstay of the expansion during - , contributing . per cent to real GDP growth. Leading the upsurge was ‘trade, hotels, transport and communication’.
This was in consonance with the improved performance of the commodity producing sectors. The strong expansion in cargo handled at major ports as well as the rise in freight and passenger traffic of the railways boosted the performance of the transport sector. According to the latest estimates, services account for about per cent of the world economy. Industry accounts for per cent and agriculture just per cent.
Nearly per cent of the labour force in developed economies is employed in the services sector.