India’s services sector remains the strongest engine of growth for the economy, contributing 55% of the country’s Gross Value Added and employing nearly 188 million people, which is about 30% of the entire workforce. This is according to a new report released by NITI Aayog that examines trends in both economic output and employment across states.

The study covers the period from 2011 to 2012 through 2023 to 2024 and highlights both impressive gains and serious gaps.

The report notes that the services sector has created 40 million new jobs in the last six years, and that the pace of job creation has increased. The responsiveness of job growth to economic growth, also known as employment elasticity, has risen from 0.35 before the pandemic to 0.63 after it, indicating that services growth i

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