Vol. 9, Issue 10, Part A (2023)

Abstract
Though Haryana is geographically a small State, the contribution of the State in the National Gross Domestic Product at constant (2011-12) prices has been estimated to be 3.86 percent. It increased from 3.52 percent in 2014-15 to 3.86 percent in 2022-23. Haryana’s per capita income may rise to Rupees 296685 in the year 2022-23 as per the official estimate. The state economy has experienced a rise in the share of service sector. Service sector growth became the main driver of the growth process of the economy of Haryana. The annual growth rate of Haryana economy has remained consistently higher ranging between 8 to 10 percent, although agriculture sector experienced low growth during the same period 2013-14 to 2017-2018. The main objectives are to understand the service sector role in the Haryana’s growth and output and employment growth. The Shapley decomposition method is applied utilizing the Job Generation and Growth decomposition tool. The leading role of the service sector could be attributed to the change within the service sector itself as its output share and employment share has increased along with a rise in its productivity level. The decomposition analysis can further indicate the sources of this growth. The decomposition analysis identified the importance of the service sector in general for the employment and GDP per capita growth.