IDEAS home Printed from https://ideas.repec.org/h/spr/isbchp/978-981-97-8054-9_12.html
   My bibliography  Save this book chapter

Development and Change in Services Sector of India: The Drivers and the Users

In: 75 Years of Growth, Development and Productivity in India

Author

Listed:
  • Ajitava Raychaudhuri

    (Adamas University)

  • Partha Pratim Ghosh

    (St. Xavier’s College (Autonomous) Kolkata)

Abstract

The present paper analyzes the main drivers of growth of the services sector in India. The focus is on the interdependence of the services sector on manufacturing sector and vice versa. Shift-share analysis shows that the change in productivity of services sectors is mainly due to within-sector rather than inter-sector effects. Input–Output analysis reveals that although the existing service output levels are heavily dependent on inter-industry intermediate use, the growth of such services depends vitally on final demand in most cases. Technological changes in many sectors has reduced per unit requirement of services but the scale effect dominates so that a rising final demand has to be supplemented by larger intermediate demand for services—the latter sometimes labelled as servicification of manufacturing sector. It emerges that while a deliberate push to manufacturing will be a boon to services as well, the growth of the services sector will promote larger use of the same in many manufacturing sectors and at the same time create more demand for manufacturing goods through inter-industry backward linkage effect.

Suggested Citation

  • Ajitava Raychaudhuri & Partha Pratim Ghosh, 2025. "Development and Change in Services Sector of India: The Drivers and the Users," India Studies in Business and Economics, in: Dibyendu Maiti & Bishwanath Goldar & K.L. Krishna (ed.), 75 Years of Growth, Development and Productivity in India, chapter 0, pages 419-457, Springer.
    • Handle: RePEc:spr:isbchp:978-981-97-8054-9_12
    DOI: 10.1007/978-981-97-8054-9_12
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:isbchp:978-981-97-8054-9_12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.