In most of the low income economies or developing countries (like India), agriculture is the predominant sector. As these economies progress, the share of the industrial sector in economic activities is increases. The development of industries, in turn, promotes a wide range of activities in the services sector like banking and insurance, transportation, trade, communication, etc. On the basis of this observed development pattern of countries, some economists like Fisher (1939), Clark (1940), Rostow (1960), and Kuznets (1971) have
suggested that development is a three-stage process. The dominance of the services sector in the growth process is associated with the third stage of development, However, in India, the acceleration in growth in recent years has been has been due to the dynamism of the services sector while the contribution of industry has tended to stagnate over the last five decades. Services now contribute more than 50 per cent to India’s GDP and have contributed to more than 60 per cent of India’s growth during the period of the last decade and a half. This has led to speculation whether India would chart out a unique growth path in which the country would leapfrog from a predominantly agricultural to a directly service-dominated economy by skipping the intermediate stage of rising share of industrial sector that was experienced by all the existing industrialized countries. Actually the real sectors of agriculture and industry grow fast; the services-led growth cannot be sustained for long.