This book addresses a range of issues relating to the nature and implications of growth of India’s services sector, including factors contributing to the rise of services, output measurement and heterogeneity, growth of services exports, and employment in services sectors. From service tax, exchange rate and services exports, policy interest, employment potential and diversity of the sector to challenges in financial inclusion, trajectories of ICT services and contribution of education to GDP, it brings together diverse themes to highlight major concerns in the wake of the prominent role that services have played in placing India among the fast-growing economies in the world in recent years.

The services sector in India accounts for more than 60 per cent of the GDP of the country and 28.6 per cent of its employed across government, private or state corporations and non-government organisations. The volume explores whether the services sector (beyond agriculture and industry) holds the promise of fulfilling the benefits from India’s demographic dividend for its economic transformation through sustainable growth.

With key empirical analyses of household, enterprise and macroeconomic data for India within both formal and informal sectors, this topical book will be useful to scholars and researchers of economics, Indian economy, political economy, development economics, development studies, public policy and South Asian studies and also to development professionals, policy makers and industry specialists.

part I|55 pages

Understanding services growth

chapter 3|10 pages

Service tax in India

Story of its evolution and amalgamation with goods taxation

chapter 5|19 pages

Measuring services output

Definitional and conceptual issues

part II|81 pages

Services sector, economic growth and employment

chapter 6|30 pages

Services sector in India

An exploration of the heterogeneity across sub-sectors

chapter 8|31 pages

Diversity in services sector employment in India

Evidence from India Human Development Survey, 2011–12

part III|72 pages

Insights from sectoral experiences

chapter 10|13 pages

Contribution of education to GDP growth

Measurement and policy issues

chapter 11|24 pages

Learning to ‘walk on two legs’?

Divergent trajectories and the future of India’s ICT services