Service sector statistics in India: problems and way forward
| DOI | https://doi.org/10.1108/WJSTSD-03-2015-0014 |
| Date | 07 April 2015 |
| Published date | 07 April 2015 |
| Pages | 148-154 |
| Author | Seema Joshi |
| Subject Matter | Public policy & environmental management,Environmental technology & innovation |
Service sector statistics in India:
problems and way forward
Seema Joshi
Department of Commerce, University of Delhi, Delhi, India
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.
Keywords Quantification, Service sector statistics
Paper type Literature review
Introduction
It has been observed in various studies that as the process of development gets
underway in developing countries, the tertiary sector output and employment grow
faster than that of the material production sectors. 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 question arises as to
why the problem of quantification of output in tertiary sector is so complex and
peculiar compared to the quantification of output in the commodity producing sectors.
One obvious explanation lies in the fact the problem arises because of intangibility and
heterogeneity of services. Unlike commodities, services are intangible so that these
cannot be counted or measured as objects. Besides this, the services are heterogeneous
in the sense that each unit of a particular service may differ from the other units in
respect of quality of delivery of service. The problem inherently lies in the rendering or
delivery of services. Standardization of production of commodities is a common feature
of modern day production processes. This cannot be ensured in the case of most
services. This renders that measurement of output of services difficult if not impossible.
In developing economies, these peculiarities additionally arise because of part
production of services in the unorganized sector, and absence of market prices of
several services (PA&D being a primary example of such services). It is true that so far
World Journal of Science,
Technology and Sustainable
Development
Vol. 12 No. 2, 2015
pp. 148-154
©Emerald Group Publishing Limited
2042-5945
DOI 10.1108/WJSTSD-03-2015-0014
Received 5 March 2015
Revised 5 March 2015
Accepted 6 March 2015
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/2042-5945.htm
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WJSTSD
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