ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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India's Services Sector

Gateway to Development?

There are various problems in looking at services as the gateway to development in India. First, the sectoral shift of the gross domestic product in favour of services has not been matched by concomitant changes in employment patterns. Second, the services sector has exhibited a dualism wherein the fastest growing services are the high productivity, low employment-generating ones. And lastly, but signifi cantly, much of the growth in services has necessitated the transfer of resources to the private corporate sector and destruction of livelihoods of people dependent on such resources.

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