Service sector forms an important branch of an economy today. Not only in the developed economies but also in the underdeveloped and developing economies its importance cannot be under estimated. Activities like, banking, trade, communication, education, health etc. have to form the basis for development for any economy. Not only that these are also the ends of what a modern economy seeks to achieve. After independence, India embarked on a growth pattern dependent on development of heavy industries. But, unlike the paths of development observed in other countries like: Britain, Germany, China etc. where service sector developed after the blooming of secondary sector, India went directly to Service led growth especially after 1991 reforms. This has given rise to some concern in some circles about whether India has “Skipped a stage of growth”.