The past few decades have seen significant shifts in the global trade landscape. Services exports have become an increasingly vital component of a country’s export basket along with their growing share in the world economy. Structural changes due to technological innovations and subsequent changes in the production-distribution dynamics have put services at the center of the world commerce and have fueled a new wave of globalization. In India, while there is services dominated growth domestically, the country is also gearing up to sizable position itself in the global services economy.
As India moves progressively towards becoming a knowledge economy it becomes increasingly important for the country to focus on advancement of skills which are relevant to the emerging economic environment where the services sector play a dynamic role.
The Services sector contributes 31 per cent of India’s employment. Further, the value addition per person employed is the highest in the Services Sector. India is targeting to be a $5 trillion economy by 2025 of which the dominant share of 60% or $3 trillion economy by 2025 will be from services. From a national perspective, the importance of services sector as a key driver of the Indian economy is very clear.
The First Edition of the Services Sector Newsletter is enclosed.