Service sector statistics in India: problems and way forward

Abstract

Purpose – It has been observed in various studies that the “servicization” of the structures of production and employment has taken place in India. However, a problem peculiar to this sector or several types of services is that the output of some components of this sector is difficult to measure as well as to value it in monetary terms. The purpose of this paper is to identify the problems encountered in the measurement of service sector output. Design/methodology/approach – The paper makes use of secondary sources of data including various reports, books and journals, etc. An attempt has been made in this paper to review those studies which deal with measurement problems in services sector output. Findings – In the Indian context, it has been found that the data base on the service sector is highly disorganized. It has been recognized in studies that the limitation of the existing system is marred by the absence of a well-organized mechanism for maintaining a regular and proper database for this sector. A large number of the unorganized units are located in the service sector and the composition of units in the domain undergoes changes at a rapid pace because new units or newer service areas come into existence and others disappear with alarming frequency. Therefore, the need for “devising a proper classification of services” by identifying all new services and adopting a suitable methodology so as to maintain international comparability of data has been highlighted in various studies. Originality/value – Although there are studies which try to point out measurability problems of services in developed European economies, however, studies related to service sector statistics problems in India are far less in number. This paper will therefore mainly focus on the service sector statistics problems in India and point out the way forward.