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Policy Implications:
The expansion of the services sector has wider implications for population, employment, and trade prospects of the economy, some of which are as follows:
1) The growing share of the services sector points to the need for policy initiatives towards introducing greater competition and efficiency in this sector so as to ensure its sustained contribution to exports (especially software) and to higher long-term growth.
2) The gains in productivity in the agricultural and industrial sectors resulting from technological progress and innovation will have the effect of shifting employment away from the non-service sector to the services sector. This may also indicate a shift in real expenditures from commodities to value added services.
3) The services sector constitutes a tax-base with vast but unexploited potential, and, therefore, its growth has long-term implications for the fiscal policy.
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