NITI Aayog Launches Reports on India’s Services Sector Growth and Employment Trends

• NITI Aayog has released two key reports under its Services Thematic Series , highlighting the sector’s growing role in India’s economy and employment landscape. The reports were launched by B.V.R. Subrahmanyam , CEO of NITI Aayog, along with Dr. Arvind Virmani and Dr. V. Anantha Nageswaran .

Services Sector Contribution and State-Level Insights

• The first report, “India’s Services Sector: Insights from GVA Trends and State-Level Dynamics,” shows that services contributed around 55% of India’s Gross Value Added (GVA) in 2024–25. While disparities remain across states, lagging regions are catching up, suggesting more balanced growth. The study calls for greater investment in digital infrastructure, logistics, finance, and innovation to boost competitiveness.

Employment Trends and Challenges

• The second report, “India’s Services Sector: Insights from Employment Trends and State-Level Dynamics,” examines job patterns within the sector. It highlights a divide between modern, high-productivity subsectors that generate limited jobs and traditional, low-wage ones with high informality. Issues like job quality, gender gaps, and regional imbalances remain key challenges.

Policy Roadmap for Inclusive Growth

• The reports propose a four-part roadmap focused on formalisation, skilling, digital access, and regional balance . Key priorities include social protection for gig and MSME workers, skill development for women and rural youth, and growth of Tier-2 and Tier-3 city service hubs .

Exam-Oriented Facts

• Services sector contributed ~55% of India’s GVA in 2024–25.

• Reports launched by B.V.R. Subrahmanyam, CEO, NITI Aayog.

• Focus areas: output, employment, and state-level dynamics.

• Policy priorities: formalisation, skilling, and digital infrastructure.

Towards Viksit Bharat @ 2047
The reports reaffirm the services sector’s central role in achieving Viksit Bharat @ 2047 , advocating for innovation-led, inclusive, and digital-driven growth to position India as a global services leader.