Service economy can refer to one or both of

two recent economic developments: The

increased importance of the service sector in
industrialized economies. The current list of
Fortune 500 companies contains more
service companies and fewer manufacturers
than in previous decades.

India has the second fastest growing

services sector with its compound
annual growth rate at nine per cent,
just below Chinas 10.9 per cent,
during the last 11-year period from
2001 to 2012, the Economic Survey
for 2013-14 said. Russia at 5.4 per
cent is a distant third.

Among the world's top 15 countries
in terms of GDP, India ranked 10th in
terms of overall GDP and 12th in
terms of services GDP in 2012, it
said, adding that services share in
world GDP was 65.9 per cent but its
share in employment was only 44 per
cent in 2012.
As per the survey, in India, the
growth of services-sector GDP has
been higher than that of overall GDP
between the period FY2001-
FY2014. Services constitute a major
portion of Indias GDP with a 57 per
cent share in GDP at factor cost (at
current prices) in 2013-14, an
increase of 6 percentage points over
2000-01.
the Lok Sabha, has pegged GDP
growth for the year 2014-15 in
the range of 5.4-5.9 per cent.
Definition of 'Gross Domestic Product - GDP'
The monetary value of all the finished goods
and services produced within a country's
borders in a specific time period,
though GDP is usually calculated on an annual
basis.

The monetary value of all the finished goods and services produced
within a country's borders in a specific time period, though GDP is
usually calculated on an annual basis. It includes all of private and
public consumption, government outlays, investments and exports
less imports that occur within a defined territory.

GDP = C + G + I + NX

where:

"C" is equal to all private consumption, or consumer spending, in a
nation's economy
"G" is the sum of government spending
"I" is the sum of all the country's businesses spending on capital
"NX" is the nation's total net exports, calculated as total exports
minus total imports. (NX = Exports - Imports)