BS EDIT: The Growth Engine

By Business StandardPublished On Oct 31, 2025

The Growth Engine

Services now make up 55% of India’s GVA and employ 188 million. But behind the boom lies a story of uneven progress

Jobs with a Divide

Post-Covid, services added 40 million jobs. Yet, high-value sectors thrive while traditional ones lose job intensity

The Missing Middle

Modern services are high-productivity but capital-heavy. Traditional ones employ many but stay low-value and informal

Women and Inequality

Only 10.5% of rural women work in services, earning less than half of men’s wages. Parity exists only in select fields

Regional Gaps

Southern states lead in modern services. Northern and eastern states remain tied to low-productivity trade and retail

The Road to Inclusion

Formalising service jobs, skilling women and gig workers, and expanding to smaller cities can make growth more equal