Income and Employment Generation in Service Sectors Stimulated by Trade in Non-Service Sectors: The Case of Indian Economy

In this paper, we have made an attempt to study the net employment and income generation in service sectors induced by trade in non-service sectors of the Indian economy. In our empirical exercise, we have used domestic I-O matrices instead of total transaction matrices to obtain more precise result in respect of projection of net employment and income generation. Our projections tend to show that net employment and income generation in service sectors such as 'Transport, Storage and Communication ’, 'Domestic Trade ’, 'Hotels and Restaurant ’, 'Banking and Insurance and Real Estate ’and 'Renting and Business Services ’induced by trade in non-service sectors are substantially and consistently positive.