The Slow-down in Services

Too much is being made of the marginal acceleration in growth during the fi rst quarter (April-June) of 2012-13. What should worry us is the steady slowdown in services, which has now touched a new. Services have fuelled GDP growth in recent years, but they cannot indefi nitely sustain a growth acceleration nor can export demand by itself hold up services. The service sector depends on the industrial and agricultural sectors, where growth has slowed because of the decline in investment growth.