In the last decade or so, Indian service sector has emerged the nucleus of India’s export growth and major source to attract FDI. Hence, it is paramount to investigate the growth of service sector in national economy. This paper considers work force and GDP as two important parameters to measure the growth in the form of employment generation and relative contribution to GDP in the national economic structure. Like middle economies, Indian service sector has been generating more employment in comparison with agriculture and industry and more than half of country’s GDP is contributed by it. During the last 60 years (1951-2012), the relative share of service sector in GDP has almost doubled from 28 percent to 56 percent. Identical growth has also been observed in the employment generation.

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