India is ranked as the second fastest growing major economy in the world,with a GDP growth rate of 9.4% for the fiscal year 2006-2007.However,the per capita income of our country is still very low because of the huge population.

Indian economy is largely agriculture based which employs a large magnitude of workforce but its contribution to the Indian economy is very less because of a very low growth rate.The other sectors which are playing key role in the shaping-up of Indian economy are manufacturing,software engineering,service sector,pharmaceutical,bio-technology,telecommunication and aviation sector.Among all these the services sector has shown a considerate growth rate.

Service sector has contributed close to 68.6 percent of the overall average growth in GDP in the last five years.It is the information technology (IT) and IT enabled services which has helped service sector to grow at a very substantial rate of 11 percent during 2006-07.

Though the economic index is appealing but the stark reality is somewhat different.There is no doubt that Indian economy is reaching places but the benefit of this growth is just restricted to a very small community of India.It has yet to reach the general masses.A brief look at some of the facts:

• 26 percent of Indian population still lives below the poverty line.
• 60 million children below the age of six sleep without food.
• 16 lakh babies die before their first birthday.
• Farmers commiting suicide under excessive debt conditions is frequent.
• Prices of essential commodities are increasing rapidly.
The Indian economy can only boom if the gap between the rich and the poor narrows down and the layman receives the fruits of development.