Imagine a world where every skill-set finds its place, where individuals from early-career roles to seasoned tour guides and skilled tech consultants all land their dream jobs. Enter the vibrant realm of the services sector, potentially a bustling bazaar of opportunities. This dynamic set of activities drives 55 per cent of India’s GDP, contributes 44 per cent of exports, and employs a third of the workforce. From brewing coffee to balancing spreadsheets, the services sector embraces many skills. In a diverse country like India, it can transform the employment gap into a canvas for innovation and growth.

The tourism sector, which accounted for about 13 per cent of India’s employment in 2020-21, stands out as a major potential source of job creation. Covering hospitality, travel, cultural, heritage, and religious tourism, it offers diverse roles for tour guides, travel agents, and local artisans, providing significant opportunities for low to medium-skilled workers. While advanced skills aren’t always necessary, success in these roles depends on strong interpersonal, management, and experiential abilities, which are crucial for improving service quality and visitor satisfaction.

Government initiatives like ‘Hunar Se Rozgar Tak’ and the Incredible India Tourism Facilitator Certificate Programme aim to enhance these skills. To ensure these skills translate into effective job opportunities and industry growth, upgrading tourism infrastructure is essential. Infrastructure development is ramping up with increased funding for tourism projects, and the launch of Swadesh Darshan and PRASHAD schemes. The government envisions creating around 140 million jobs in tourism by 2030, focusing on inclusive growth, cruise tourism, ecotourism, and adventure tourism. Future efforts should prioritise infrastructure enhancements, expanding skill programmes, and capitalising on regional tourism opportunities.

India’s attractions — from ecotourism in Kaziranga National Park and cultural tourism in Varanasi to backwaters-based tourism in Kerala and adventure tourism in Goa — offer immense potential to drive growth and employment. We can boost tourism and create job opportunities across skill levels by marketing these offerings globally.

Another sector soaring new heights is aviation, driven by expansive airport projects and increased capacity. India’s aviation industry is making strides in gender diversity, with women comprising 15 per cent of pilots — about three times the global average. Establishing new flying training organisations at airports supports this growth by broadening pilot training opportunities and raising awareness among potential pilots. As the aviation industry continues to expand, more crew members, ground staff, and flight attendants will be needed to support the growing fleet, making continued investment in training and recruitment crucial for the sector’s future.

E-commerce platforms

The retail sector is undergoing a digital revolution, with platforms like the Open Network for Digital Commerce transforming how small retailers connect with consumers. Representing over 10 per cent of the economy and about 8 per cent of the workforce, retail stands to gain immensely from this shift. By joining e-commerce platforms, small retailers can expand their market reach, enhance efficiency, and create new job opportunities in logistics, customer service, and technology. However, many of these retailers struggle with the technicalities of online selling, cataloguing, and data privacy, leaving them on the sidelines of the digital economy. To address this, support systems like ‘Vyapaar Gyan Kendras’ — similar to Krishi Vigyan Kendras for agriculture — could provide guidance, simplify on-boarding, and offer ongoing assistance. These centres would help retailers transition to digital, ensuring they benefit from e-commerce and contribute to a more inclusive economic landscape.

The logistics sector offers substantial employment opportunities for medium-skilled workers. Embracing innovative strategies across transportation networks can significantly transform logistics infrastructure. This includes harnessing inland waterways and using digital platforms to optimise route planning for roadways, enable dynamic freight bookings for railways, automate cargo management for shipping, and streamline passenger scheduling for airways. Enhanced capacity optimisation will support larger operational scales and generate new job opportunities in logistics coordination and support services. Tapping these channels will improve connectivity between suppliers and transporters, driving growth and employment.

Business services

Finally, the financial, business, and tech services sectors showcase high-skill employment, brimming with opportunities for innovation and start-ups. Over the past decade, employment in business services has nearly doubled, driven by digitisation, technological advancements, and supportive government initiatives. A report by Capital Economics argues that Artificial Intelligence could slow down India’s services export growth, cutting it by 0.3-0.4 percentage points a year over the next decade. While this poses a challenge, it also creates demand for new skills in cybersecurity, data privacy, and advanced analytics. As industries adapt, focusing on high-value job creation and diversifying skill sets will be crucial. By advancing tech capabilities and digital infrastructure, India can solidify its position as a global leader in high-tech services.

Ultimately, if tapped well, the services sector presents a solution for broad-based employment generation, where innovation meets opportunity and every skill finds its place in the economic growth mosaic. This calls for seamless and continuous interaction and coordination between industry, academic and skilling institutions and governments at different tiers.

The writers are from the Indian Economic Service. Views are personal