In the age of globalization & societal transformation, the composition of GDP has witnessed shifting trends. Now in days India is being posed as the most potential and growing economy of the world not only in terms of market size but also in terms of technology up gradation. In 1950 when Indian republic status was declared the economy was characterized by legacy and imprints of colonial gesture. In view of the need of planned economy, the govt. initiated process of planning through five years plans with establishment of planning commission in 1952 followed by National Development Council (NDC). The purpose of planning was to identify, generate & distribute the available resources (physical, natural & financial) in equi Table manner for the ultimate upliftment of the society in consonance with the constitutional mandate of providing a socialist pattern of society. The growth experience of Indian economy has witnessed structural changes which are reflected in eleven five year plans. Despite various hurdles on political, economic, social & technological fronts we are able to sustain our growth trajectory during last 60 years of republic. As a matter of proud, the govt. targets the inclusive growth during the 11th five year plan which is nothing but only an extension of indicative planning targeted during 8th five year plan. While evaluating the performance & contribution of Service Sector in Indian economy, the transformation of world trade with the emergence of WTO and its impact on the trade pattern and behavior in context of India has to be judged. Though all three sectors of economy have seen tremendous growth and contributed to the GDP during the last sixty two years, the growing importance of service sector particularly in the aftermath of reforms is a sign of India‘s being projected as superpower of future. This paper has been divided into five parts. The first part of the paper deals with the conceptual framework defining and classifying services according to different parameters. The second part of the paper is devoted to find a track record of service sector growth pattern during five year plans i.e. evolution of services as a major contributor of the GDP. The third part of the paper is dedicated to the performance of service sector and various service subsectors in the aftermath of LPG i.e. after 1991.The next part of the paper discusses about the drivers of growth in service led economy of India. The fifth part of the paper is an attempt to identify some issues and challenges related to service trade w.r.t. GATS. In the last, conclusion has been drawn based on the preceding discussion.