The services sector is not only the dominant sector in India’s GDP, but has also appealed significant foreign security tides, significantly backing to exports as well as provide large-scale employment. India’s services sector covers a wide variety of activities such as trade, hotel and restaurants, transport, storage and communication, financing, insurance, real estate, business services, community, social and personal services, and services associated with construction. Labor productivity in services is the chief and it has amplified tirelessly. India’s service sector is recognized by its magnitude and vigor accounting for more than 55% to gross domestic product (GDP) which is progressively increasing by 10 % p.a. and contributing to around 25% to aggregate employment and having major provisions in FDI invasions and 33% of total exports. The statistics pertaining to a number of aspects of service sector was collected from secondary source such as published articles, journals and reports. The report aims to analyze the performance, growth and also challenges faced by service sector in India. The results revealed that amongst different countries India levels 12^th position, sharing service sector to Indian economy. (IBEF, 2017)

The services sector’s evolution was expressively faster than the 6.6% for the joint agriculture and industry sectors annual output growth. Further, India with a services sector share of 52% in national GDP in 2009 and 55.2 per cent in 2009-10 associates well even with the developed countries in the top 12 countries with the highest overall GDP. It was observed that there was an upsurge in share of service sector to countries GDP at existing prices from 30.5 to 55 % during 1950-2010. The report also conveys that the performance of service sector such as communication, transportation and storage was high with an growth of 15 % in 2009-10 when compared to other sectors and hotels and restaurants had an adverse growth rate in the economy. Further, the major challenges in service sector was to retain the competitiveness and preserve the traditional service sectors such as shipping and tourism. Furthermore, there is lot of scope for India’s domestic market such as sectors like education, accounting and health care service. Hence, the reading suggest that if these challenging issues can be taken care still the service sector can be boosted with good discretionary growth for offering many employment opportunities and also maintaining balance of trade. (AOISS, 2016)