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Services-Led Industrialization in India: Assessment and Lessons

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Author Info
Singh, Nirvikar

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Abstract

This paper provides an integrated analysis of the role of the service sector in recent Indian economic development. It discusses the nature of services, their distinction from products, and their categorization. It provides an overview of India’s overall growth experience, and a detailed examination of the contribution of the service sector to growth. It includes an examination of the potential for spillovers from IT, ITES and other service sectors such as financial services, to the rest of the economy, drawing on econometric work, as well as input-output analysis of linkages to understand these possible spillovers and growth potentials. Based on this evidence, it appears that India’s manufacturing sector development may have been constrained in part by weaknesses in key service sectors such as transportation and electricity. The paper also considers the particular role of international trade in services, which is of growing importance. It discusses the consequences for employment of different growth paths, the challenges of education and manpower training to support and sustain India’s development path, and social and environmental issues, including regional inequality issues. The Indian experience is related to recent discussions of industrial policy, and development policy more generally

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 1276.

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Date of creation: Nov 2006
Date of revision: Dec 2006
Handle: RePEc:pra:mprapa:1276

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Related research
Keywords: service sector industrialization economic development linkages information technology

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Find related papers by JEL classification:
O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
L8 - Industrial Organization - - Industry Studies: Services
O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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References listed on IDEAS
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.:
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    Other versions:
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  6. Gulyani, Sumila, 2001. "Effects of Poor Transportation on Lean Production and Industrial Clustering: Evidence from the Indian Auto Industry," World Development, Elsevier, vol. 29(7), pages 1157-1177, July. [Downloadable!] (restricted)
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  8. James P. F. Gordon & Poonam Gupta, 2004. "Understanding India’s Services Revolution," IMF Working Papers 04/171, International Monetary Fund. [Downloadable!]
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  12. Sukti Dasgupta & Ajit Singh, 2006. "Manufacturing, Services and Premature De-Industrialisation in Developing Countries: A Kaldorian Empirical Analysis," ESRC Centre for Business Research - Working Papers wp327, ESRC Centre for Business Research. [Downloadable!]
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  31. Timothy Besley & Robin Burgess, 2004. "Can Labor Regulation Hinder Economic Performance? Evidence from India," The Quarterly Journal of Economics, MIT Press, vol. 119(1), pages 91-134, February. [Downloadable!] (restricted)
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  32. Melvin, James R, 1995. "History and Measurement in the Service Sector: A Review," Review of Income and Wealth, Blackwell Publishing, vol. 41(4), pages 481-94, December.
Full references

Cited by:
(explanations, 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.)

  1. Singh, Nirvikar, 2007. "The Dynamics of Reform of India’s Federal System," MPRA Paper 2282, University Library of Munich, Germany. [Downloadable!]
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