Case Study:The history of many developed countries shows that economic development is a three stage process. In the first stage ,agriculture is the predominant sector. As the economy progresses ,the share of the industrial sector in economic activities increases .This is the second stage. The development of industries, in turn,promotes a wide range of activities in the services sector like banking and insurance, transportation, trade, communications etc.This is the third stage. However,In India,the acceleration of growth process in the economic reforms period has been due to the dynamism of the service sector .

What is the engine of growth in India?

Service sector

The engine of growth in India is "Service sector". Although, scholars argue that the service sector should not be considered as an engine of growth. India and Pakistan have raised their share of output mainly in this sector only.