Quick Overview

Among the emerging economies, India has a distinctive position relating to the services sector of the economy. It is the fastest growing sector in India, contributing significantly to GDP growth, employment, trade and investment. In a ‘new economy’ setting, both new goods, and services that accompany such new good, (for servicing or support) occupy the market. The market becomes increasingly ‘international’ than ‘national’ or ‘local’. Considering such transition in the economy, it is important to examine the structural and directional changes in the rural services sector from the point of view of sharpening our understanding of this vital subsector, as also for shaping appropriate development policies. This study, based on available literature in the subject area and previous studies by the ISED, formal and informal discussions at the peer level, and a field research in two Districts of Kerala, provide useful indications on growth, structural changes, policy imperatives, and on the way forward.