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Services generates bulk of India's jobs, increases gap with manufacturing

Services employment creation has been robust in FY25 amid concern over impact of artificial intelligence

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India needs to create around 8 million jobs a year for its growing working age population

Sachin P Mampatta Mumbai

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Amid the doom and gloom about the impact of artificial intelligence (AI) on the software industry, the services sector still carries the burden of job creation in India.
 
For every job created by the manufacturing sector in FY25, services generated nearly three, shows a Business Standard analysis of data from the Centre for Monitoring Indian Economy surveys. Manufacturing jobs are important because they are seen as a way to provide gainful employment to a large number of individuals who may have low education levels. The gap between the share of services and manufacturing jobs is increasing.