NITI Aayog CEO BVR Subrahmanyam released two landmark reports under the "Services Thematic Series" on October 28, 2025, marking a significant step in India's policy focus on the services sector. The dual release highlights the growing importance of services in driving economic growth and employment generation across the country.
The services sector now contributes approximately 55% of India's Gross Value Added (GVA), cementing its position as the backbone of the Indian economy. Over the past six years, the sector has generated around 40 million new jobs, demonstrating its vital role in absorbing the country's expanding workforce. The reports examine sectoral trends, performance benchmarks, and policy recommendations for sustained growth.
A key finding of the reports is the geographical concentration of services activity. Karnataka, Maharashtra, Tamil Nadu and Telangana together account for nearly 40% of services output, reflecting the concentration of modern, high-productivity services such as IT, finance and professional services in highly urbanised states. This concentration raises important questions about balanced regional development.
The reports also present a detailed roadmap for gig worker policy, an increasingly urgent issue as platform-based employment has grown rapidly. Recommendations include social security frameworks, skill development initiatives, and dispute resolution mechanisms for gig and platform workers who currently lack formal employment protections.
The "Services Thematic Series" is intended as a recurring policy document series, with future editions planned to track progress on recommendations and highlight emerging trends. The release aligns with India's broader ambitions to leverage its services competitiveness for expanding exports and attracting foreign investment, particularly in emerging areas such as Global Capability Centres (GCCs) and digital services.