India's Services Sector Employment at 30%: Challenges and Opportunities for Growth Beyond Global Averages

Oct 29, 2025 02:06 am CST

NITI Aayog's comprehensive report reveals India's services sector employs 30% of the workforce, below the global average of 50%, despite creating 40 million jobs in six years. While contributing over half of national output, the sector faces challenges including widespread informality, gender disparities, and regional imbalances. The analysis provides a four-part policy framework focused on formalization, digital access, skills development, and balanced regional growth to address the disconnect between economic contribution and employment quality.