Institute for Social and Economic Change

Established in 1972 by Professor V K R V Rao, ISEC is an All-India Institute for Interdisciplinary Research and Training in the Social Sciences

The Role of Telecommunication Service Sector in Indian Economy – An Analysis of Output and Employment Linkages – isec

The Role of Telecommunication Service Sector in Indian Economy – An Analysis of Output and Employment Linkages

The Role of Telecommunication Service Sector in Indian Economy – An Analysis of Output and Employment Linkages


Prajeesh Karonnon and Meenakshi Rajeev


Abstract


The telecom services have remained as a major sub-sector within the communication sector over the years. The sector has attracted the attention of the policy makers evidently during post- 2000 due to its widening demand. Whether the sector deserves adequate policy attention is an empirical question. This study aims at identifying the role of the sector in the growth of Indian economy by examining its linkage effects with the rest of the economy. It is carried out by using Input-Output (I-O) analysis. Further, the study also examines the employment linkages of the sector to assess the ability of the sector in generating employment in the economy. Through the Input-Output (I-O) analysis, it is found that the communication sector is one among the highly linked sectors in Indian economy. Sectors which are crucial to the economy, such as electricity, financial services, transport, and construction are reliant upon the communication sector. The sector has a large indirect employment generation potential, and the backward employment linkage of the sector is increasing over the years.

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