Indian Knowledge Systems (IKS) and Service Sector Development in India

Abstract The service sector in India has evolved since independence as a fringe part of the economy into the primary driver of the economy as it contributes above 53% of the Gross Domestic Product (GDP) in 202324. Although much of this growth is due to global outsourcing, financial liberalization, and digital innovations, Indian Knowledge Systems (IKS) have also played a large role in services by educating, health, Ayurveda, yoga, artisanal knowledge, and community-based finance. The paper will discuss the historical course of the Indian service sector, the contribution of IKS to knowledge based services and the introduction of contemporary technologies including IT-enabled services (ITES), fintech and digital platforms. The study employs a descriptive-analytical approach by using secondary data, which include Reserve Bank of India (RBI), Ministry of Commerce and Industry (MoCI), Ministry of Tourism (MoT), World Bank, IMF and the NITI Aayog. The results demonstrate that in spite of the dominance of the modern services, like IT and finance, as the leading export items, the IKS-based services remain the domestic and global concern in the wellness, education, and cultural tourism. The article incorporates the thesis that the deployment of IKS and current digital technology is essential to sustainable service-based development that is inclusive.