India’s services sector considered as the backbone of its economy, came into sharper focus as NITI Aayog released two detailed reports mapping trends in output and employment across states. The launch, led by CEO B.V.R. Subrahmanyam along with Dr. Arvind Virmani (Member, NITI Aayog) and Dr. V. Anantha Nageswaran (Chief Economic Adviser), brought together senior officials, industry leaders and researchers thus reflecting how central this sector is to India’s growth story.
Together, the studies under the topics, “India’s Services Sector: Insights from GVA Trends and State-Level Dynamics” and “India’s Services Sector: Insights from Employment Trends and State-Level Dynamics”, ellaborate the nuances behind the numbers. With services now contributing nearly 55% of India’s Gross Value Added (GVA), the reports spotlight how growth and job creation are unfolding differently across regions.
The first report reveals a changing map of progress. While traditional leaders like Maharashtra, Karnataka and Delhi still dominate, several other states are catching up, pointing toward a more regionally balanced growth pattern. It recommends a dual approach with national policies meant to strengthen digital infrastructure, finance, logistics and innovation, and the state-level strategies built on local strengths and create new service clusters in emerging cities.
The second report dives into employment realities. It highlights how India’s service sector holds both high-value, tech-driven roles and vast informal, low-paid segments. Persistent challenges include informality, uneven job creation, and gender and regional disparities. The study urges greater formalisation, targeted skilling, digital inclusion and social protection, especially for women, youth, gig and self-employed workers.
As India pursues its Viksit Bharat vison for 2047 , these insights highly emphasize that growth in services must be fairer, faster and inclusive. With more focus on investing in skills, innovation and talent, India can expand the scope of services sector as a process of prosperity and a pathway to dignity for millions.
