Service sector's contribution to exports in India

Introduction:
The service sector has emerged as the major contributor to India's GDP growth in the last decade. It includes sectors such as IT, banking, insurance, tourism, and healthcare, among others. The sector has also played a significant role in India's exports.

Export contribution:
According to the data from the Ministry of Commerce and Industry, the service sector accounted for nearly 35 percent of India's total exports in 2004-05. It was a significant increase from the earlier years when the contribution was much lower.

Reasons:
There are several reasons for the service sector's increasing contribution to exports in India. One of the primary reasons is the growth of the IT industry. India is considered a hub for IT services, and the sector has been growing at a rapid pace in recent years. Other factors that have contributed to the growth of the service sector include the liberalization of the economy, favorable government policies, and an increase in foreign investments.

Challenges:
The service sector also faces several challenges that need to be addressed. One of the major challenges is the lack of skilled manpower. The industry requires skilled workers with specific skill sets, and there is a shortage of such workers in the country. Another challenge is the lack of infrastructure, particularly in the tourism sector.

Conclusion:
Despite the challenges, the service sector's contribution to India's exports is significant and will continue to grow in the coming years. The government's focus on promoting the sector through various policies and initiatives will further boost its growth and contribution to the economy.