The services sector continued its growth momentum to retain its supremacy, accounting for over 55 per cent of the economy even though industry grew at a blistering pace of 88.7 per cent since 1999-2000.
"Services contributed as much as 68.6 per cent of the overall average growth in GDP in the last five years between 2002-03 and 2006-07. The share of services improved to 55.1 per cent," said the Economic Survey for 2006-07 that was presented in Parliament on Tuesday.
The growth in services has been broadbased, with three sub-sectors -- trade, hotels, transport and communication services -- boosting the sector by growing at double digit rates for four consecutive years.
Impressive growth in IT and ITeS services, rail and road traffic and fast additions to the existing stock of telephone connections, particularly mobile, played a key role in such growth, the Survey said.
Outside the sunrise and conventional sub-sectors, financial services like banking, insurance, real estate and business services grew at a strong 11.1 per cent in 2006-07.
After a slow growth of 5.6 per cent in 2003-04, this sub- sector bounced back in the past two years. The realty boom too supplemented it.
Tourism, which is part of services, also saw impressive growth. IT-enabled services and the BPO industry grew substantially, with Indian companies expanding their service offerings.
There was also growth in the telecom sector, with India emerging as the world's fastest growing telecom market.
