The paper looks at why India's services sector has been growing. In the 1990s, services like communication, banking, IT, and community services expanded quickly. Factors like high demand for services, more services used by other sectors, and exports helped boost growth. Reforms and new technology also played a big role. The potential for Indian services exports to grow is high, but more growth is possible in the service economy if deregulation continues. Employment growth in the services sector has been low, so industry and agriculture need to grow too.