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

Service SectorSubscribe to Service Sector

Why Output Rises Faster than Employment in the Service Sector of India?

India’s exceptional growth pattern after the 1980s is attributed to the robust growth of the service sector. The growth pattern of services is not homogeneous and uniform.

Sectoral Linkages and Growth Prospects

This paper examines the linkage of growth among the agriculture, industry and services sectors of the economy, using both an input-output (I-O) and a simultaneous equation framework. Despite the substantial increase in the share of the services sector in GDP over the years, the I-O tables suggest that the agricultural sector still plays an important role in determining the overall growth rate of the economy through demand linkages with other sectors of the economy.

General Agreement on Trade in Services

Concerns have been voiced about the WTO's encroachment into social service sectors such as health, education, and environment under the General Agreement on Trade in Services (GATS) and how this may undermine national sovereignty and autonomy in social policy-making. However, most of these concerns stem from misunderstandings and lack of information about the liberalisation process under the GATS. This paper tries to dispel such unwarranted fears by highlighting the GATS' commitment structure and framework and explaining how countries can retain their autonomy in social policy-making under the GATS. However, it also points out some problem areas in this regard, tracing their source to various ambiguities and weaknesses in the GATS framework. The paper highlights the need to use the ongoing GATS 2000 negotiations effectively so as to strengthen the GATS framework and address these problematic issues.

Globalisation and Indian Services Sector

In view of the growing importance of services in the economy and the significance of the multilateral framework for enhancing India's trade prospects in the sector, liberalisation of trade and investment in the services sector is especially important.

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