A Structural Change in Demand for Service-due to Income Elasticity: A Macro Analysis

Abstract

Present condition shows that India has a higher economic growth. When we talk about which factors
are responsible for economic growth. There will be many factors but the main factor is demand
service and rapid growth and its service sector that have contributed to overall economic growth. The
present study is a attempt to provide a substantial theoretical explanation through demand. Side to
support service led growth. The present study estimates the income elasticity of demand for service
from 1951 to 2010. The study finds a structural change in demand for services corresponding to
income.