New Delhi: The government said on Wednesday that it will conduct a comprehensive and organized service department survey of organized industrial enterprises and unorganized companies starting from January 2026. “From 2026, India will have detailed data on the contribution of formal services sectors to the economy and employment, just like the industrial sector,” said the Ministry of Statistics and Program Implementation.
According to the ministry, the service industry is the main driver of India’s economy, contributing over 50% to the country’s GDP and providing millions of jobs. “Accurate and comprehensive data in this area are crucial for informed decision-making, strategic planning and investment decisions. The main purpose is to test the operational process – business response, clarity of survey instructions, efficacy of questionnaires, and key data from official records such as accounting books, income statements, etc.,” it said.
The ministry used the Goods and Services Tax Network (GSTN) data as a framework for accredited enterprises to pilot. The study, which considered the results of 4,086 service companies, found that companies with output of Rs 5 billion or more (contributing more than 60% of the service economy) accounted for only 3% of the listed entity universe that responded to the survey.
According to the survey results, these companies account for 62.3% of capital expenditure and 69.5% of total value-added (GVA). Their share of employment is less obvious, at 37%, while the share of companies with Rs 100-50 billion is 33.7%. “In terms of compensation, larger companies have better performance. Larger companies have a share of 63.2% of payroll, and larger companies (Rs 100-50 billion) have a share of 22%.”
The ministry said the service department companies are divided into three categories: construction, trade and other services. “These are the trading companies tend to have more offices than construction and other service companies. Smaller companies, which are more than half of these companies, account for only 2.6% of assets, 2.4% of CAPEX and 1.2% of output. The study classifies smaller companies as smaller companies, which produce less than Rs 10 crore,” the ministry said.
“About 28.5% of businesses reported that the state had additional locations of business within the state. That percentage was the highest in the department, with about 41.8% of businesses reporting other locations of business in the state,” the ministry added.
