Shashanka Bhide is Senior Advisor, National Council of Applied Economic Research, New Delhi and was Director, Madras Institute of Development Studies, Chennai, India. He has contributed to research in agriculture, macroeconomic modelling and poverty analysis.V.N. Balasubramanyam is Professor (Emeritus) of Development Economics, Management School, Lancaster University, UK. He has published widely and his current research is on foreign investment, diaspora and development. K.L. Krishna is Chairperson, Madras Institute of Development Studies, Chennai; former Professor, University of Delhi; and Member, Centre for Development Economics, Delhi School of Economics, Delhi, India. He has published in applied econometrics, industrial economics, productivity analysis and trade.

• 1 Introduction PART I Understanding services growth 2 Can services lead the Indian economy?3 Service tax in India: story of its evolution and amalgamation with goods taxation4 Exchange rate and India’s services exports5 Measuring services output: definitional and conceptual issues PART II Services sector, economic growth and employment 6 Services sector in India: an exploration of the heterogeneity across sub-sectors7 Employment potential in the services sector in India: an overview8 Diversity in services sector employment in India: evidence from India Human Development Survey, 2011–12 PART III Insights from sectoral experiences: education, financial services and the IT industry 9 Production loan access and urban self-employed households10 Contribution of education to GDP growth: measurement and policy issues11 Learning to ‘walk on two legs’?: divergent trajectories and the future of India’s ICT services

Shashanka Bhide is Senior Advisor, National Council of Applied Economic Research, New Delhi and was Director, Madras Institute of Development Studies, Chennai, India. He has contributed to research in agriculture, macroeconomic modelling and poverty analysis.V.N. Balasubramanyam is Professor (Emeritus) of Development Economics, Management School, Lancaster University, UK. He has published widely and his current research is on foreign investment, diaspora and development. K.L. Krishna is Chairperson, Madras Institute of Development Studies, Chennai; former Professor, University of Delhi; and Member, Centre for Development Economics, Delhi School of Economics, Delhi, India. He has published in applied econometrics, industrial economics, productivity analysis and trade.

• 1 Introduction PART I Understanding services growth 2 Can services lead the Indian economy?3 Service tax in India: story of its evolution and amalgamation with goods taxation4 Exchange rate and India’s services exports5 Measuring services output: definitional and conceptual issues PART II Services sector, economic growth and employment 6 Services sector in India: an exploration of the heterogeneity across sub-sectors7 Employment potential in the services sector in India: an overview8 Diversity in services sector employment in India: evidence from India Human Development Survey, 2011–12 PART III Insights from sectoral experiences: education, financial services and the IT industry 9 Production loan access and urban self-employed households10 Contribution of education to GDP growth: measurement and policy issues11 Learning to ‘walk on two legs’?: divergent trajectories and the future of India’s ICT services