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Stable high growth in the service sector has made India free from the stigma of slow and steady ‘Hindu rate of growth’ of about 3.5% per annum during the first three decades of independence. Service-led growth has placed India among the top performing giant economies in the world. India is now a 3 trillion USD (United States Dollar) economy in terms of Nominal GDP (IMF, 2020). Under this milieu, the chapter aims to examine whether the growth in the service sector in India is inclusive or not. The observations of the study have shown that the service sector has been growing at fast pace compared to the other two sectors, which makes the system into jobless status. The sectoral contribution of service sector to the GDP is increasing after the new economic reform of 1990, but the employment contribution is going down. So the country is now in the grip of ‘jobless’ growth, and the grip is strengthening because of some structural issues such as changes in consumers’ demand with rising per capita income. Further deepening of finance capital in the savings sphere of service sector has made the wide disconnect between the real economic activity and growth of finance capital. Revival of high linkage sectors with higher potential for employment growth, such as agriculture and manufacturing, can be game changer towards the goal of inclusiveness.

The purpose of this study is to detail about the India’s service sector with different aspects of services and the opportunities or challenges that lie within it.

Preliminary part of the study covers the following details of the India’s services sector: services gross domestic product (GDP), individual states/union territories’ services contributions, services foreign direct investment (FDI), services export, services employment, services inflation and overall service performance. Then the study compares India’s services sector performances with the top 15 services performance countries in the world in terms of GDP.

Study found R&D services, legal services, media and broadcasting services and “internal trade and repairs services” to be the potential services sub-sectors that will boost the services sector growth in future. Finally, the study concluded with the implication of the present study finding/results for the present Indian Government policies related to the services, trade, FDI for economic growth and employment.

The study has significant public policy content. The research focuses on the economic and commercial impact, mainly by practice.

The paper is original and brings out some valuable finding that will help the policymakers and economists to make policy decision regarding India’s services: sector, trade and employment. The study has found R&D services, legal services, media & broadcasting services and internal trade and repairs services as the potential services sub-sectors which are new and not addressed by any other studies.

India emerged as one of the fastest growing economies of the world during the 1990s because of the spectacular dynamism shown by the services sector. India’s services sector has been burgeoning fast and one of the major driver’s of the growth of services sector is Information Technology (IT) and Information Technol ogy Enabled Services (ITES). It is well documented in literature that IT impacts growth by different channels. In this study we try to empirically verify the question: Can IT and ITES be an engine of growth? Using micro‐level data of 100 households of 20 IT and ITES firms along with secondary data we tried to estimate the extent of indirect employment generation at macro‐level and the share of IT and ITES in total employment and total value added. According to our study, one job for skilled professional employed in IT and ITES spins off jobs for 0.48 semi‐skilled, low skills or unskilled workers. As per our estimates, the 16 lakh workers who are expected to be directly employed in IT sector in the FY 2008 would generate secondary em ployment for 7,68,000 people which would constitute 0.16 per cent of total employment. However, the share of consumption expenditure of 16 lakh professionals would be 20 per cent of total value added. Assuming the consumption expenditure of the IT and ITES workers and total value added to be the same/constant when we tried to assess the contribution of consumption expenditure of 2.3 million workers (who are projected to be directly absorbed by IT sector by 2010, NASSCOM, 2005) to total value added it comes out to be 29 per cent of total value added. The study says that the proportion of IT‐ITES in total employment may be small but its contribution to total value added is still very high. Indeed IT and ITES can be an engine of growth in India’s economy by way of generating demand impulses in the economy as has been hypothesised and shown through the present study. Keeping in view the contributions of this sector and its huge untapped potential as evident from the present study and various other studies, there is a need for introduction and implementation of policy initiatives to address the challenges faced by this sector and to sustain the growth driven by the services sector.

The dynamics of economic growth in India continues to engage economists and still remains much debated. The trends and patterns of growth observed in India have seen acceleration in growth in Indian economy in the period following macroeconomic reforms and policy changes in investment and trade regimes. However, when and how did India transform itself from Hindu rate of growth to the present growth regime continues to be debated.

Using INDIA KLEMS data set, this study provides a distinctive perspective on India’s economic growth. A unique data set comprising 27 sectors of Indian economy at a disaggregate industry level for a period of 30 years, beginning 1980s, attempts to understand the dynamics of India’s growth from the contribution of industries that comprise the Indian economy.

This productivity data set offers a new way of analyzing the dynamics of growth including the sources of growth. The growth empirics allow evaluation of the relative significance of total factor productivity growth vis-a-vis input accumulation in accounting for output growth. In addition, the authors were able to document the industry contributions to aggregate growth. In this way, they were able to analyze the importance of the constituent industries within the different sectors of the economy − agriculture, manufacturing, construction and market, as well as non-market services in accounting for the observed growth in India. In conclusion, the industry perspective offers a new and analytical way of discerning new aspects of India’s march to higher growth regimes in post-1990s era.

A unique data set comprising 27 sectors of Indian economy at a disaggregate industry level for a period of 30 years, beginning 1980s, attempts to understand the dynamics of India’s growth from the contribution of industries that comprise the Indian economy.

This paper aims to survey India's experience with exporting services. The authors seek to show that the country's experience is unique in that modern tradable services are a significantly larger share of GDP than in other countries at comparable levels of economic development. This has not always been the case, however; India's out‐performance is limited to recent years. Policy initiatives, from trade reform to liberalization of domestic industrial and service sectors, were important for jump‐starting the process.

This paper reviews the literature and evidence. It takes a close look at the Indian service sector and specifically information‐technology‐related (IT) services, seeking to situate the growth in service exports from India in its comparative context. The authors document the role that exports of services have played in the performance of the Indian economy in recent years. They seek to pinpoint the “take‐off” in Indian services output and establish the extent to which the country's success in exporting services is exceptional from an international point of view. And they discuss the extent to which India's performance as an exporter of services has been shaped by policies liberalizing the service sector itself and by liberalization of the manufacturing sector.

Panel and country‐specific regressions for a cross section of countries point to the importance of a range of additional factors: overall economic development, communications infrastructure, access to foreign technology, and spillovers between the merchandise and service exports. Importantly, however, these factors, jointly or individually, do not wipe out the significance of a dummy variable for India. India, evidently, is a significant outlier as an exporter of services, and even more so as the period proceeds.

The paper discusses the country's major policy initiatives, such as trade reforms and liberalization of domestic industrial and service sectors, and their importance for jump‐starting the process of services growth and its exports. Regression results show that, in addition to these policies, other factors such as overall economic development, communications infrastructure, access to foreign technology, and spillovers between the merchandise and service exports were important as well.

It has been observed in various studies that the “servicization” of the structures of production and employment has taken place in India. However, a problem peculiar to this sector or several types of services is that the output of some components of this sector is difficult to measure as well as to value it in monetary terms. The purpose of this paper is to identify the problems encountered in the measurement of service sector output.

The paper makes use of secondary sources of data including various reports, books and journals, etc. An attempt has been made in this paper to review those studies which deal with measurement problems in services sector output.

In the Indian context, it has been found that the data base on the service sector is highly disorganized. It has been recognized in studies that the limitation of the existing system is marred by the absence of a well-organized mechanism for maintaining a regular and proper database for this sector. A large number of the unorganized units are located in the service sector and the composition of units in the domain undergoes changes at a rapid pace because new units or newer service areas come into existence and others disappear with alarming frequency. Therefore, the need for “devising a proper classification of services” by identifying all new services and adopting a suitable methodology so as to maintain international comparability of data has been highlighted in various studies.

Although there are studies which try to point out measurability problems of services in developed European economies, however, studies related to service sector statistics problems in India are far less in number. This paper will therefore mainly focus on the service sector statistics problems in India and point out the way forward.

In India, economic reforms adopted in 1991 in form of LPG (Liberalization-Privatization-Globalization) removed numerous barriers to grow and offered opportunities to improve productivity, particularly, for the manufacturing sector. But the rationale that manufacturing sector acted as main contributor to country's economic growth via GDP growth (called “engine of growth”) for a long time in India has been challenged now a day. The growing significance of the services sector across the world exhibits that at the present time, the services sector could become the new engine of economic growth in developing economies like India. The present study seeks to bring to light whether manufacturing is acting as an “engine of growth” at inter-state level in India or not and the cross section result indicates that potency of manufacturing growth and agricultural growth is gradually slowing down as a conforming part of economic growth and service sector is taking leading position in accelerating engine of growth in India.

India started economic reforms at a rapid pace to catch up the world economy by following the services-led-growth model during the post-liberalisation period. Over the years, the growing unemployment rate posits a re-look into the dynamics of growth model for wider work force participation. In this backdrop, the paper aims to examine the dynamics of structural changes in employment pattern in view of economic growth led by services-led growth model in India.

The study employs a non-linear autoregressive model (NARDL) to examine the effect of the growth rates in three broad economic sectors namely agriculture and allied, services and industry on work force participation representing the employment opportunities in India.

The results highlight that the rapid expansion of the service sector has not occurred with enough employment opportunities by the same rate. By contrast, the growth in the industrial sector significantly creates employment opportunities in the short and long run. These results support the industry led growth model over the services for sustainable and inclusive economic growth in the country.

The study relies on combined labour force participation rates rather than gender-specific rates. Further, the regulatory, working conditions and economic incentives may affect the gender-specific engagement of the labour force in three broad sectors.

The results offer important insight into changing patterns in employment with policy lessons. A wider workforce force participation calls for expansion of manufacturing activities through pro-industry programmes.

The study makes pioneer efforts to examine the dynamics of labour force participation with respect to the growth of three broad economic sectors of the Indian economy. The results provide new insights with policy implications for the changing employment pattern and policy response.

The purpose of this paper is to present an overview of trends of Indian information technology and business processing management (IT-BPM) sector and to analyse the determinants of IT-BPM sector during the period 1991-2014.

The study is based on annual data collected from National Association of Software and Service Companies and Department of Electronic and Information Technology for the period 1991 to 2014. The methodology adopted for studying the objectives are simple averages, percentages, ratios, growth rates, graphs prepared on the basis of data from the IT-BPM sector and regression analysis. Trends and patterns in key variables, such as total revenue, domestic revenue, export revenue, employment and exports of the IT-BPM sector have been examined. Factors influencing IT-BPM export growth have been analysed using ordinary least square multiple regression model, with growth rates of gross domestic product (GDP), labour productivity, exchange rate and previous year’s export, as the explanatory variables.

The export revenue from IT-BPM sector increased continuously over the years, at an average growth rate of 36.60 per cent during the period 1991 to 2014. Similarly, domestic revenue of IT-BPM sector also increased, but at a lower growth rate. This is because domestic market in India is captured by multinational giants against Indian firms, which do not possess full comparative advantage in the case of IT-BPM sector. Indian firms are producing low skill activities required for production, mainly concentrated only in the export sector. Direct employment, excluding hardware from IT-BPM sector, has grown at an average rate of 18.08 per cent over the study period. The determinants of IT-BPM exports indicated previous year’s export demand to be significantly contributing the highest to export growth rate. This was followed by GDP growth rate, implying that overall growth of the economy leads to significant increase in export growth. Increased labour productivity followed next in significantly encouraging export growth.

Generalization of the results may not be possible, as Indian conditions and policies vary.

The paper has implications for the expansion of domestic market, diversification of trade and products, innovations for increasing competitiveness and sustainability in the global market in the wake of stiff competitions from new competitors.

This paper focuses on originality in analysis of determinants of export growth.

The purpose of this paper is to present a historical overview of the health service sector in India. The development in the healthcare sector from the late eighteenth century into current times is examined from the prism of the role played by British and US healthcare systems in influencing change in the Indian setup.

Online databases searched were PubMed and JSTOR, using the search terms, “Indian health service system in transition”, “British influence on the Indian healthcare setup” and “American neo-liberal influence on Indian healthcare sector”. The authors then examined titles and abstracts of selected articles for short-listing relevant articles. Reference lists of selected articles were examined for further locating related studies. While this constituted the secondary literature for the current paper, reports by governmental and non-governmental organisation reports on the Indian health service system too were utilised as primary data sources.

Influenced by the British and later by the American healthcare system, the Indian healthcare network has undergone numerous changes. In the present era, the Indian healthcare system is increasingly veering towards the American model of healthcare delivery. Health is increasingly being conceived of as a commodity to be traded in the market, with the state’s role curtailed towards provisioning for and facilitating access of the weakest sections of the society through a means-tested insurance system. This has happened without adequate checks and balances on the private sector to ensure that the needs of the people accessing the system are adequately met.

By tracing the development of the health service sector in India and the motives that guide such change, the paper depicts how the thrust of the system has altered from one providing universal healthcare services to the people, irrespective of their ability to pay, at the time of independence to commercialisation in present times. With the marketisation of healthcare, the focus has shifted from serving people to profiting from the provisioning of healthcare.

The paper throws light on the underlying inadequacies of the Indian healthcare setup and the need for more active participation by the government in this sector in the future if it aims to make healthcare more equitably accessible to its vast population.