Economic Effects on the Services Sector's Growth and Employment

Dr. Ajit Singh

Abstract

The service sector is India's biggest and fastest-growing industry, with the greatest worker productivity. However, employment has not kept pace with the sector's proportion of GDP, and it has failed to create the quantity or quality of jobs required. No strategy promotes inclusive development, and the sector's expansion is hampered by numerous, uncoordinated governing bodies. Many laws are out of date, and foreign direct investment is subject to limitations and obstacles. While India is in the top ten WTO members in terms of service exports and imports, its growth and exports are slower than those of the People's Republic of China, and its exports are competitive in just a few services and a few markets. The majority of India's poor lack access to essential services such as healthcare and education, and the country's infrastructure is aging, making service delivery expensive. Despite India's desire to be a knowledge center, there is no consistency in educational quality or standards, and formal education does not ensure employment. Policy steps for inclusive growth are recommended, as well as measures to improve India's global competitiveness in the services sector.

Keywords

Economic, Growth, Employment, Services Sector

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Cites this article as

D. A. Singh "Economic Effects on the Services Sector's Growth and Employment", International Journal of Innovative Research in Engineering & Management (IJIREM), Vol-5, Issue-4, Page No-159-165, 2018. Available from: