India’s services sector is fast emerging as a powerhouse of job creation, with its share in total employment climbing from 26.9 percent in 2011–12 to 29.7 percent in 2023–24, according to two new NITI Aayog reports. “Services employment share rose from 26.9 percent (2011-12) to 29.7 percent (2023-24),” the report said, according to ANI.The two reports, “India’s Services Sector: Insights from Employment Trends and State-Level Dynamics” and “India’s Services Sector: Insights from GVA Trends and State-Level Dynamics”, take a closer look at how the services sector is shaping India’s economy, highlighting patterns in job growth and state-wise performance.In the past six years, the services sector has added close to 40 million jobs, bringing total employment to about 188 million, nearly one in every three workers in India.According to NITI Aayog, while sectors like trade, repair, and transport still employ most of the workforce, newer areas such as finance, IT, and professional services are quickly becoming the next big job creators. The think tank said these modern services are driving opportunities with better pay and growing global connections.“Traditional sectors are primary employers, but modern services show most promise for growth,” read the report.The report also noted an improvement in gross employment elasticity, a measure of how job growth responds to output growth, which increased from 0.35 before the pandemic to 0.63 in the post-pandemic period.Despite the steady rise, India’s services sector continues to lag the global average of about 50 percent, indicating a gradual structural transition. The report found regional disparities in how the services sector is driving jobs. Southern and western states are witnessing faster growth in modern services such as IT, finance, and business support, while smaller states continue to rely heavily on education, healthcare, and public administration for employment.NITI Aayog said the findings will contribute to the Viksit Bharat 2047 roadmap, helping states design strategies to expand service-led growth and create more jobs across different sectors.In an earlier report, NITI Aayog projected that artificial intelligence (AI) could generate up to 4 million new jobs in India by 2030, particularly in technology and customer experience-related roles.The report noted that routine jobs like quality assurance engineers and Level 1 support agents could be phased out by 2031 if timely steps are not taken. It further added that targeted skilling and innovation could help the country turn this shift into a source of new employment.