Service sector emerges as the largest contributor to GDP in 2008-09

Although, India was affected by the global economic turmoil in the second half last year, the country is still expecting a Gross Domestic Product (GDP) growth rate of five to six per cent in 2008-09. An analysis has shown the service sector to be the main contributor in the last fiscal. The entire service sector provided an input of 57 per cent with the trade and hotels segment alone contributing to about 11 per cent of the GDP in 2008-09, according to a report by Q S Consultants.

The Delhi-based consultancy firm's latest research report, Economic Snapshot - India 2009 provides a macroeconomic view of the Indian growth story in the last financial year; it focuses significantly on the Indian tourism and hospitality sector’s growth potential. Speaking with TravelBiz Monitor about the same; Sunil Rao, Executive Director, Q S Consultants stated, “Tourism and hospitality have emerged as the major contributors to India’s GDP and the numbers have risen over the years. Tourism will drive the economy upwards in the coming years.”