Large service enterprises generate 69.5% of GVA

A pilot study by MoSPI reveals that large service enterprises with ₹500 crore or more output contributed nearly 70% of India’s service sector GVA in FY23, despite making up just 2.8% of surveyed firms. These companies also employed the largest workforce share at 37%, followed by mid-sized firms contributing 33.7% of employment.

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Large service enterprises with an output of ₹500 crore or more contributed 69.5% of the gross value added (GVA) in FY23, as per a pilot study released by the Ministry of Statistics and Programme Implementation (MoSPI) on Wednesday. Despite constituting only 2.8% of the total enterprises surveyed, these large firms employed the highest share of the workforce at 37%.

“Next were companies with an output of Rs 100-500 crore, which account for 33.7% of employment,” the study noted. These mid-sized enterprises also played a significant role in generating jobs across the service sector.

The findings are part of the pilot edition of the Annual Survey of Service Sector Enterprises (ASSSE), which aims to provide more accurate and granular insights into the structure and contribution of India’s vast and diverse service sector. This sector, which includes industries like information technology, finance, real estate, transport, healthcare, and education, remains a key pillar of the Indian economy.

“The service sector plays a crucial role for the Indian economy, contributing over 50% to the country’s GDP.” The latest data further underscores the dominance of large-scale service enterprises not just in output but also in employment, reinforcing their centrality to economic planning and policy formulation.

As India looks to accelerate economic growth and employment generation, insights from the ASSSE can help better align policies with the sector’s actual dynamics, especially considering the pivotal role of large and mid-sized enterprises in value creation and workforce absorption.