India’s services sector has added nearly 40 million jobs in the past six years, with employment elasticity rising to 0.63 in the post-COVID recovery from 0.35, second only to construction, Niti Aayog said in a report on Tuesday.

The services sector employs nearly 188 million workers, contributes more than half of the national gross value added (GVA), and has proven itself to be resilient during crises such as the COVID-19 pandemic.

However, without structural reforms, the sector’s potential could be squandered in a cycle of low-quality job expansion, it cautioned in a report titled “India’s Services Sector: Insights from Employment Trends and State-Level Dynamics.”

The services employment share rose from 26.9% in 2011–12 to 29.7% in 2023–24. However, it still lags the global average o

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