Services Growth in India [epw, Economy,Essay]

Macroeconomic data shows a lack of improvement in the incremental capital-output ratio along with diminishing total factor productivity in India's services sector--surely a warning. If far-reaching measures are not taken, India may soon be unable to compete in the global market in this area.

Rajarangamani Gopalan (rgopalanr@gmail. com) is Member, Public Enterprises Selection Board, and was earlier Secretary, Department of Economic Affairs, Ministry of Finance. Manak C Singhi (singhi.manak@gmail.com) was earlier Senior Adviser in the Ministry of Finance.