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INTRODUCTION Today 75 million Americans are employed in the service sector and as much as 70 percent of the US economy is service-oriented. 1 A recent FICCI paper avers that the service sector can contribute more than 50 percent to the national GDP by AD 2000 provided it grows at a rate of 5.3 percent annually.2 This works out, the projected growth in this sector is going to surpass the growth in the agricultural and industrial sectors. Services occupy a place of significant importance in the Indian economy. The service trade accounts for almost 46 percent of the total GDP in India. According to the Seventh Plan document, it is expected that its share would increase to 58 % by the end of the century.3 It employs nearly a fourth more than the people employed in the manufacturing sector in India.

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