Growth of Service Sector in Haryana

Over the last two decades, Haryana has emerged as one of the most prosperous states of Indian federation. The State has transformed itself from a State known for its agricultural production to a well rounded development State. Haryana’s growth and development trajectory has been progressive since its inception. Service sector boom along with sizeable industrialization has propelled a vertical increase in state per capita income. The key drivers of fast service sector in Haryana are -its well-developed physical infrastructure such as power, roads and railways and social infrastructure like education and health, growing IT sector, several projects such as KMP Expressway, DMIC Project, international cargo airport and SEZ. The structural change in Haryana has been in tune with the growth pattern of Indian economy and global economy in terms of changing shares of sectoral output in the State domestic product. The state economy has experienced a rise in the share of service sector. Service sector growth became the main driver of the growth process of the economy of Haryana. An analysis of the growth pattern of Service sector and sub sectoral growth behavior pattern in terms of output shares is essential to understand the role of Service sector in the economy of Haryana. Service Sector refers to multitude of activities which comprise of activities like Trade, Repair Services, Transportation, Hospitality, Entertainment, Communication, Health, Education, Support and Advisory Services.The part A of the paper discusses the growth profile of service Sector along with its sub sectors. Part B analyses the contribution of Service sector to growth in Haryana.