India’s Services Sector Report 2025

Description

The India’s Services Sector: Insights from GVA Trends and State-Level Dynamics (2025) presents a comprehensive analysis of India’s structural transformation towards a services-driven economy. The report reveals that the services sector now contributes around 55% to India’s Gross Value Added (GVA), establishing itself as the primary driver of growth and stability. Through detailed GVA-based assessments across states and sub-sectors, it identifies how India’s economic structure has shifted from the traditional agriculture–industry–services model to a distinctive services-led trajectory.

It highlights regional disparities in growth, with states such as Karnataka, Maharashtra, Tamil Nadu, and Telangana leading through high-value, modern services like IT, finance, and professional services, while others remain dependent on traditional, labour-intensive sub-sectors. The report also introduces a four-quadrant framework—Engines of Growth, Emerging Stars, Mature Giants, and Struggling Segments—to guide targeted policy interventions.

Aligned with Viksit Bharat @2047, the study underscores the importance of digital infrastructure, skills, innovation, and institutional capacity in fostering inclusive and regionally balanced growth. It provides actionable strategies to enhance productivity, expand employment, and strengthen India’s position in the global services economy.