October 29, 2025
The reports, released in the presence of Dr Arvind Virmani and Dr V. Anantha Nageswaran, offer India’s first detailed macro-level assessment of the services sector across states
The first report tracks services-led growth and state-level GVA trends, showing emerging regional convergence
The second report analyses employment trends, revealing structural dualities between modern high-productivity and traditional informal segments
The studies recommend digital infrastructure, innovation, finance, logistics, and skilling as key priorities for sustainable growth
NITI Aayog has launched two landmark reports under its Services Thematic Series, providing the first comprehensive macroeconomic assessment of India’s services sector through the twin lenses of output and employment.
The reports were unveiled by B.V.R. Subrahmanyam, CEO, NITI Aayog, in the presence of Dr Arvind Virmani, Member, NITI Aayog, and Dr V. Anantha Nageswaran, Chief Economic Adviser to the Government of India. The event was attended by senior officials from Central and State Governments, representatives from industry associations, and members of academia.
The first report, titled “India’s Services Sector: Insights from GVA Trends and State-Level Dynamics”, examines how services-led growth is unfolding across different regions. It analyses whether states with initially smaller service-sector bases are catching up with more advanced ones—an important measure of balanced regional development.
The report notes that the services sector now contributes nearly 55 per cent of India’s Gross Value Added (GVA) in 2024–25 and remains the cornerstone of national economic growth. While inter-state disparities in service-sector shares have marginally widened, there is clear evidence that lagging states are beginning to catch up, indicating a trend of regional convergence.
At the policy level, the report calls for strengthening digital infrastructure, logistics, innovation systems, finance, and skilling to enhance competitiveness and diversification. It further urges states to design tailored service strategies, build institutional capacity, and integrate services with industrial and urban ecosystems to drive balanced growth.
The second report, “India’s Services Sector: Insights from Employment Trends and State-Level Dynamics”, focuses on the multi-dimensional profile of India’s services workforce—analysing data by subsector, gender, region, education, and occupation. It highlights the sector’s dual structure, combining modern, high-productivity industries that are globally competitive but limited in employment potential, with traditional, labour-intensive segments that remain largely informal and low-paying.
The findings show that services continue to power employment growth and post-pandemic recovery, yet job creation remains uneven, informality persists, and gender and regional disparities are pronounced.
By positioning services as a strategic engine of productive, inclusive and high-quality employment, the reports reaffirm the sector’s pivotal role in India’s economic transformation and the broader vision of Viksit Bharat @ 2047.
They also offer an indicative pathway for State Governments and industry, calling for deeper digital integration, innovation ecosystems, and a stronger focus on human capital and institutional capacity to unlock the next wave of services-led growth and establish India as a trusted global services leader.
Source: Press Information Bureau