The Service Sector as Indiaâ€™s Road to Economic Growth?
AbstractAmong fast growing developing countries, India is distinctive for the role of the service sector. However, sceptics have raised doubts about both the quality and sustainability of the increase in service sector activity and its implications for economic development. Using National Accounts Statistics and cross-county data, we show that the growth of services has been broad-based. We show that the growth of service sector employment is not simply disguised manufacturing activity. We also find that the skilled-unskilled mix of labour in the two sectors is becoming increasingly similar. Hence, it is no longer obvious that manufacturing is the main destination for the vast majority of Indian labour moving into the modern sector and that modern services are only a viable destination for the highly skilled few. To the extent that the expansion of both modern manufacturing and modern services is constrained by the availability of skilled labour, this just underscores the importance for India of continuing to invest in labour skills. We conclude that sustaining economic growth and raising living standards will require shifting labour out of agriculture into both manufacturing and services and not just into one or the other.[Working Paper No. 249]
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by eSocialSciences in its series Working Papers with number id:2604.
Date of creation: Jun 2010
Date of revision:
Note: Institutional Papers
Contact details of provider:
Web page: http://www.esocialsciences.org
The Service Sector as Indiaâ€™s Road to Economic Growth?;
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kalpana Kochhar & Utsav Kumar & Raghuram Rajan & Arvind Subramanian, 2006.
"India's Patterns of Development: What Happened, What Follows,"
NBER Working Papers
12023, National Bureau of Economic Research, Inc.
- Kochhar, Kalpana & Kumar, Utsav & Rajan, Raghuram & Subramanian, Arvind & Tokatlidis, Ioannis, 2006. "India's pattern of development: What happened, what follows?," Journal of Monetary Economics, Elsevier, vol. 53(5), pages 981-1019, July.
- Arvind Subramanian & Raghuram Rajan & Ioannis Tokatlidis & Kalpana Kochhar & Utsav Kumar, 2006. "India's Pattern of Development: What Happened, What Follows?," IMF Working Papers 06/22, International Monetary Fund.
- Poonam Gupta & James P. F. Gordon, 2004. "Understanding Indiaâ€™s Services Revolution," IMF Working Papers 04/171, International Monetary Fund.
- Borchert, Ingo & Mattoo, Aaditya, 2009.
"The crisis-resilience of services trade,"
Policy Research Working Paper Series
4917, The World Bank.
- J. Bradford Jensen & Lori G. Kletzer, 2005. "Tradable Services: Understanding the Scope and Impact of Services Outsourcing," Working Paper Series WP05-9, Peterson Institute for International Economics.
- K.V. Ramaswamy & Tushar Agrawal, 2012. "Services-led growth, employment and job quality: A Study of manufacturing and service-sector in urban India," Working Papers 2012-007, Madras School of Economics,Chennai,India.
- Nobuaki Yamashita, 2012. "Can India become an export platform for global operations of Japanese and American multinational corporations affiliates?," Working Papers 11112, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
- Felipe, Jesus & Kumar, Utsav & Abdon, Arnelyn, 2013. "Exports, capabilities, and industrial policy in India," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 939-956.
- Shepherd, Ben & Pasadilla, Gloria, 2012. "Services as a New Engine of Growth for ASEAN, the People’s Republic of China, and India," ADBI Working Papers 349, Asian Development Bank Institute.
- Mark Weisbrot & Rebecca Ray, 2011. "The Scorecard on Development, 1960-2010: Closing the Gap?," CEPR Reports and Issue Briefs 2011-09, Center for Economic and Policy Research (CEPR).
- Kolavalli, Shashi & Robinson, Elizabeth J. Z. & Diao, Xinshen & Alpuerto, Vida & Folledo, Renato & Slavova, Mira & Ngeleza, Guyslain K. & Asante, Felix Ankomah, 2012. "Economic transformation in Ghana: Where will the path lead?," IFPRI discussion papers 1161, International Food Policy Research Institute (IFPRI).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Padma Prakash).
If references are entirely missing, you can add them using this form.