Journal Press India^®

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Services play a very vital role in the economies of both developed and developing countries. Services sector form the backbone of the Delhi’s economy. It has given Delhi the status of a mature economy, by not depending on the fancies of weather, or the industrial inconstancy to which other developed economies are periodically subject. Key service industries include trade, hotels & restaurants, construction, electricity, transport, storage, communication, banking and insurance, real estate, ownership of dwelling, public administration, and other services. The data collection was based on the secondary sources where the data was collected from the annual book of the Directorate of Economics & Statistics, Govt. of NCT of Delhi and website, various issues of the economic survey of Delhi and RBI’s “Handbook of Statistics on the Indian States 2016-17”. For explaining, time-series data have been used since 1993. Further the period of study was taken from 1993-94 and 2017-2018. The paper aims at analyzing the nature and growth along with the important determinants of service sector growth in the economy of Delhi NCT. The present study is expected to provide more meaningful, consistent and realistic results on the issues under study. Using A. Holub’s methodology, the study finds that Delhi witnessed a structural transformation and have contributed positively to growth. Service sector has been playing a very important role in the growth as compared to the primary with least and the secondary sector with a satisfactory contribution. It has been found that service sector played a dominant role in the growth of the Delhi’s economy. The service sector has the ability to maintain a high economic growth and can also encourage growth in other sectors of the economy of Delhi. Further, the study can be more helpful, if along with Delhi NCT, NCR like Gurugram, Faridabad, Noida, and Ghaziabad are also included. This extension can lead to much better results as the rise of these cities is also helping in the growth of Delhi NCT , especially the rising growth of real estate sector, business services, and communication sector as a result of the growth of NCR.

Keywords

Growth, economy, role, importance, primary, secondary, service.

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