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

NITI Aayog has unveiled two landmark reports under the Services Thematic Series, marking a significant step in understanding India’s services-led economic transformation. The reports were launched by Shri B.V.R. Subrahmanyam, CEO of NITI Aayog, in the presence of Dr. Arvind Virmani, Member, NITI Aayog, and Dr. V. Anantha Nageswaran, Chief Economic Adviser, Government of India. Senior officials, industry leaders, and academics participated in the event, which highlighted the centrality of services in India’s growth and employment narrative.

Assessing Services Sector Output and State-Level Dynamics

The first report, ““India’s Services Sector: Insights from GVA Trends and State-Level Dynamics””, provides a comprehensive assessment of services output across states. The sector contributed around 55 per cent of India’s Gross Value Added (GVA) in 2024–25, reaffirming its dominance in the national economy. The findings reveal that while inter-state disparities persist, lagging regions are gradually catching up, indicating a trend toward balanced regional development. The study calls for investments in digital infrastructure, logistics, finance, and innovation to strengthen competitiveness and inclusivity across states.

Services Employment: Insights and Challenges

The second report, ““India’s Services Sector: Insights from Employment Trends and State-Level Dynamics””, delves into the composition and quality of employment within the services sector. It identifies a dual structure — modern, high-productivity subsectors with limited job creation alongside traditional, low-wage segments with high informality. While the sector has been central to India’s post-pandemic employment recovery, uneven job quality, gender gaps, and regional disparities remain pressing challenges that need targeted policy attention.

Policy Roadmap for Inclusive Growth

To address these challenges, the report outlines a four-part roadmap focusing on formalisation, skill development, digital access, and regional balance. It emphasises social protection for gig and MSME workers, skill enhancement for women and rural youth, and the creation of Tier-2 and Tier-3 city service hubs. These measures aim to integrate inclusion with productivity and strengthen the services sector’s role in generating quality employment.

Exam Oriented Facts

• Services sector contributed about 55% of India’s GVA in 2024–25.
• Reports launched by B.V.R. Subrahmanyam, CEO, NITI Aayog, in 2025.
• Thematic focus: Output and employment trends at national and state levels.
• Policy roadmap stresses formalisation, skilling, and digital infrastructure expansion.

Pathway to Viksit Bharat @ 2047

Both reports underscore the pivotal role of the services sector in India’s journey towards “Viksit Bharat @ 2047”. They advocate for deeper digital integration, innovation-led growth, and state-specific strategies to unlock the next phase of services-driven development. By aligning productivity, inclusion, and competitiveness, the reports position India as a future global leader in the services domain.