We consider a thin flat inclusion of arbitrary shape located inside a transversely isotropic elastic half-space in the plane parallel to its boundary z = 0. An arbitrary tangential displacement is prescribed on the inclusion. The boundary of the half-space is stress-free. We need to find the complete field of stresses and displacements in this half-space. A governing integral equation is derived by the generalized method of images, introduced by the author. The case of circular inclusion is considered as an example. Two methods of solution of the governing integral equation are derived. A detailed solution is presented for the particular cases of radial expansion, torsion and lateral displacement of the inclusion. The solution is also valid for the case of isotropy. The governing integral equation for the case of isotropy is derived.