If China is considered the world’s factory, India is known as the global services powerhouse. The services sector contributes over half of the country’s economic output, leaving behind primary and secondary sectors.
However, the devil in detail. Niti Aayog’s latest report on India’s services sector lays bare the paradox of the service sector — an economy that is expanding robustly in output, yet only moderately in employment. Though the sector contributed over half of the economy in 2023-24, it employed nearly 18.8 crore people, accounting for just under one-third of the total workforce.
The report shows that services have added almost four crore jobs in the past six years, which is second only to construction. Yet this statistic conceals a deeper structural divide.
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