- India’s services sector has emerged as the strongest driver of job creation, accounting for nearly 30% of total employment in 2023–24 , according to two new NITI Aayog reports. The sector added about 40 million new jobs in six years , highlighting its expanding role in India’s economic transformation.
Key Findings
- NITI Aayog’s reports — “India’s Services Sector: Insights from Employment Trends and State-Level Dynamics” and “India’s Services Sector: Insights from GVA Trends and State-Level Dynamics” — show that the services employment share rose from 26.9% in 2011–12 to 29.7% in 2023–24 , reaching 188 million workers . Although India’s share is rising steadily, it remains below the global average of 50% , suggesting continued scope for growth.
Post-Pandemic Recovery and Growth
- Employment elasticity in the services sector — which measures how job creation responds to output growth — increased from 0.35 before Covid-19 to 0.63 post-pandemic , reflecting stronger job recovery and resilience.
Modern Services Lead the Way
- Traditional sectors such as trade, transport, and repair still dominate, but modern services — including finance, IT, and business services — are driving higher productivity and better-paying jobs, with stronger global linkages.
Exam-Oriented Facts
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Services employment share: 26.9% (2011–12) → 29.7% (2023–24)
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Jobs added in six years: 40 million
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Total services employment: 188 million
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Employment elasticity: 0.35 → 0.63 (post-Covid)
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Global average for services employment: ~50%
Regional Insights and Future Outlook
Southern and western states lead in modern services employment, while smaller and northeastern states rely more on education, health, and public administration. NITI Aayog said these findings will inform the “Viksit Bharat 2047” roadmap, guiding targeted strategies for service-led growth and sustainable employment generation across India.
Month: Current Affairs - October 28, 2025
Category: ndia's services sector employment