Key Points at a Glance

  1. 1

    Services are India's largest value-added sector, but their high GVA share differs from their smaller employment share.

  2. 2

    Power-sector reform combines distribution finance, statutory regulation, renewable obligations and decentralised generation.

  3. 3

    Transport infrastructure now has corridor, port, freight-rail and logistics-policy layers that must be kept separate.

  4. 4

    Rajasthan is central through solar parks, PM-KUSUM, the Western DFC and the Delhi-Mumbai industrial corridor belt.

  5. 5

    Current anchors after 2021 include COP26 Panchamrit, PM Surya Ghar, National Green Hydrogen Mission and PM E-DRIVE.

Services as the Economy's High-Value Layer

Services Sector Share in GVA (FY 2024-25) is the macro entry point for this topic. The Economic Survey 2024-25 states that services rose from 50.6 percent of total GVA at current prices in FY14 to about 55 percent in FY25, while providing employment to about 30 percent of the workforce. That contrast explains why services cannot be read like agriculture or manufacturing: a high value-added share comes from finance, professional services, trade, hotels, transport, communication, public administration and software exports, not from a proportionate labour share. Rajasthan's service base makes the same point at state scale. Jaipur concentrates finance, health, education and logistics services; Udaipur, Jaisalmer and Jodhpur add tourism; and Kota supplies education-linked urban services. The tourism and transport pieces connect directly with energy because hotels, rail movement, highway traffic and urban water supply all depend on reliable electricity and logistics. Services also carry exports: the RBI's 2023-24 survey recorded software services exports at US$ 190.7 billion, with computer services and business-process outsourcing as the core components. The IT-BPM Industry — Services Export (FY 2023-24) anchor should therefore be placed beside tourism and logistics, not outside the economy chapter. A clean reading is that services create value through networks. Power networks enable digital and urban services, transport networks move people and goods, and payment and data systems reduce transaction costs. When a Rajasthan hotel receives a foreign tourist, a Jaipur software firm exports a contract, or a logistics warehouse near Neemrana handles freight, the service-sector number is being produced through infrastructure.

Predicted RAS Questions

Based on PYQ trends and 2026 syllabus analysis

1 1M A sector contributes about 55 percent of India's GVA in FY25 but employs about 30 percent of the workforce. Which interpretation follows? 1 marks · 0 words

Model Answer

The services sector has a much higher GVA share than employment share, which indicates high value added per worker in several service subsectors. Agriculture and manufacturing are not described by those percentages, and transport is only one component within services.