Services Sector in the Indian Economy: Macro Dynamics – Sectoral Dynamics – Policy Issues

In the beginning of the 21 century the global economy shows significant structural changes with a swing of services sector’s contribution. In the process of economic development, a simultaneous growth of primary, secondary and tertiary sectors in historical, but the high growth of services sector is phenomenal in recent decades. This is directly due to the development of sophistication in the information technology. Since 1980s the share of services sector in the real GDP in India has also surpassed that of agriculture and industry. It is also reflected in the state-level developmental growth. No doubt, the dynamics of the services sector infuses new growth impulses stimulating investment, income, consumption and employment. But there seems to be some conflict between the growth of employment and growth of output in the Indian context. The present book contains critically analysed papers on the performance, problems and perspectives of services sector in the Indian economy. Each contributor looks beyond the current scenario and prescribes various policy options to improved the productive efficiency and employment in the services sector. Overall, the common concern is that the high-profile growth of services sector benefits and distributive justice should reach the low-income-profile people in the society. Part I presents the overall trends in services sector in India with a comparative focus on Tamil Nadu. Part II focuses on the sectoral dynamics in IT enabled services, telecom, capital market, employment promotion in teleworking, significant trends in foreign direct investment, tourism and challenges in the rural banking dispensation. In part III, the contributors make a strong case for services taxation, an affective intervention in women migrant workers’ living conditions and a redefined role of state transport undertaking in India. The book provides descriptive and analytical information on a highly topical subject—shifts in sectoral contribution—in development economics. It will be of great interest to students, researchers and commentators on the Indian economic sectoral growth.