With the changing lifestyle and rising disposable income levels, the FMCG industry is all set to accelerate its growth in the coming years.The services sector accounts for more than half of India's GDP. While this takes Indian economy closer to the fundamentals of a developed economy, the services-led growth would benefit all strata of society only if it leads to broader-based development and job creation.

Unlike in manufacturing where the developed world has had a historic lead, this is a sector where the developing countries need not suffer from a handicap. India's annual GDP growth rate (at constant factor cost) has come a long way from the depressing 1.3% in 1991-92 to the impressive 9% in 2005-06. Between 1991 and 2005, i.e., in the first one-and-a-half decades of India's tryst with liberalization, the economy expanded at an annual average of about 6%. India's GDP growth in the last three years was about 8%. In 2006-07, India's GDP grew at an impressive 9.2%.

And, interestingly, the contribution of the different sectors of the economy to India's GDP during the said period reads: Agriculture - 18.5%, Industry - 26.4%, and Services - 55.1%. In fact, the average share of the services sector in GDP from 1993-94 to 2004-05 was over 8% per annum, while the share of agriculture and industry in GDP during the corresponding period stood at around 2% and less than 7% per annum respectively. What is significant about these figures is the share of the services sector in India's economic boom. India's services sector accounts for more than half of India's GDP.

The Analyst Magazine, Services Sector, Nation Economy, Fast Moving Consumer Goods, FMCG, Indian Services Sectors, Indian Economy, Gross Domestic Product, GDP, Economic Reforms, Global Economy, Technical Education Systems, Foreign direct investment, FDI.