Deciphering India’s Services Sector Growth

This book addresses a range of issues relating to the nature and implications of growth of India’s services sector, including factors contributing to the rise of services, output measurement and heterogeneity, growth of services exports, and employment in services sectors. From service tax, exchange rate and services exports, policy interest, employment potential and diversity of the sector to challenges in financial inclusion, trajectories of ICT services and contribution of education to GDP, it brings together diverse themes to highlight major concerns in the wake of the prominent role that services have played in placing India among the fast-growing economies in the world in recent years. The services sector in India accounts for more than 60 per cent of the GDP of the country and 28.6 per cent of its employed across government, private or state corporations and non-government organisations. The volume explores whether the services sector (beyond agriculture and industry) holds the promise of fulfilling the benefits from India’s demographic dividend for its economic transformation through sustainable growth. With key empirical analyses of household, enterprise and macroeconomic data for India within both formal and informal sectors, this topical book will be useful to scholars and researchers of economics, Indian economy, political economy, development economics, development studies, public policy and South Asian studies and also to development professionals, policy makers and industry specialists. Cover 1 Half Title 2 Title Page 4 Copyright Page 5 Dedication Page 6 Contents 8 List of figures 10 List of tables 11 List of appendices 14 List of contributors 15 Foreword 19 Acknowledgements 21 List of abbreviations 23 1 Introduction 28 Part I Understanding services growth 40 2 Can services lead the Indian economy? 42 3 Service tax in India: story of its evolution and amalgamation with goods taxation 54 4 Exchange rate and India’s services exports 64 5 Measuring services output: definitional and conceptual issues 76 Part II Services sector, economic growth and employment 96 6 Services sector in India: an exploration of the heterogeneity across sub-sectors 98 7 Employment potential in the services sector in India: an overview 128 8 Diversity in services sector employment in India: evidence from India Human Development Survey, 2011–12 146 Part III Insights from sectoral experiences: education, financial services and the IT industry 178 9 Production loan access and urban self-employed households 180 10 Contribution of education to GDP growth: measurement and policy issues 213 11 Learning to ‘walk on two legs’?: divergent trajectories and the future of India’s ICT services 226 Index 250 Service,sector;,Indian,economy;,growth;,industry;,sectors;,policy;,economy;,services,sector;,India,growth,economy;,Economic,transformation;,Services,growth;,Sustainability,of,Services,growth;,Employment,potential;,Modern,services;,IT,services;,Educational,services;,Informal,sector,employment;,Services,and,informal,sector;,Female,work,participation;,National,income,accounts;,Services,exports;,Exchange,rate,policy;,Informal,credit;,Banking,services;,Financial,inclusion;,Service,tax;,Goods,and,Services,Tax;,Gross,Value,Added;,Gross,Domestic,Product;,Skill,development Service sector,Indian economy,growth,industry,sectors,policy,economy,services sector,India growth economy,Economic transformation,Services growth,Sustainability of Services growth,Employment potential,Modern services,IT services,Educational services,Informal sector employment,Services and informal sector,Female work participation,National income accounts,Services exports,Exchange rate policy,Informal credit,Banking services,Financial inclusion,Service tax,Goods and Services Tax,Gross Value Added,Gross Domestic Product,Skill development This Book Addresses A Range Of Issues Relating To The Nature And Implications Of Growth Of India's Services Sector, Including Factors Contributing To The Rise Of Services, Output Measurement And Heterogeneity, Growth Of Services Exports, And Employment In Services Sectors. From Service Tax, Exchange Rate And Services Exports, Policy Interest, Employment Potential And Diversity Of The Sector To Challenges In Financial Inclusion, Trajectories Of Ict Services And Contribution Of Education To Gdp, It Brings Together Diverse Themes To Highlight Major Concerns In The Wake Of The Prominent Role That Services Have Played In Placing India Amongst The Fast-growing Economies In The World In Recent Years. The Services Sector In India Accounts For More Than 60% Of The Gdp Of The Country And Employs 28.6% Of Its Over 1.3 Billion Population Across Government, Private Or State Corporations And Non-government Organisations. The Volume Explores Whether The Services Sector (beyond Agriculture And Industry) Holds The Promise Of Fulfilling The Benefits From India's Demographic Dividend For Its Economic Transformation Through Sustainable Growth. With Key Empirical Analyses Of Household, Enterprise And Macroeconomic Data For India Within Both Formal And Informal Sectors, This Topical Book Will Be Useful To Scholars And Researchers Of Economics, Indian Economy, Political Economy, Development Economics, Development Studies, Public Policy, South Asian Studies As Also To Development Professionals, Policymakers And Industry Specialists. This book addresses a range of issues on the growth of India's services sector, including factors contributing to the rise of services, output measurement and heterogeneity, growth of services exports, and employment in services sectors.