The major factors responsible for growth in service sector are -

•The reforms introduced in 1991 removed various restrictions on movement of international finance and opened doors for liberalisation, globalisation and privatisation which led to huge inflow of foreign capital and foreign direct investment in India and opened doors for outsourcing industries. This increased the growth of service sector.

•Revolution in IT industry has also played a major role in the growth of service sector.

•Indian economy is undergoing structural transformation which means it is shifting from primary to territory sector