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Services-led industrialization in India: Assessment and lessons

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  • Singh, Nirvikar

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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Bibliographic Info

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
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Handle: RePEc:pra:mprapa:1276

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Keywords: Services; industrialization; India; economic development; industrial policy;

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Cited by:
  1. Cortuk, Orcan & Singh, Nirvikar, 2011. "Structural change and growth in India," Economics Letters, Elsevier, vol. 110(3), pages 178-181, March.
  2. Eva Näfe & Barbara von Toll, 2011. "Is Broad Industrialisation Imperative for Development? Case Studies on Uganda and Tanzania," Competence Centre on Money, Trade, Finance and Development, Hochschule fuer Technik und Wirtschaft, Berlin 1105, Hochschule fuer Technik und Wirtschaft, Berlin.
  3. Singh, Nirvikar, 2007. "The Dynamics of Reform of India’s Federal System," MPRA Paper 2282, University Library of Munich, Germany.
  4. Singh, Nirvikar & Srinivasan, T.N., 2006. "Federalism and economic development in India: An assessment," MPRA Paper 12452, University Library of Munich, Germany, revised Aug 2008.
  5. Singh, Nirvikar, 2007. "The Dynamics of Reform of India’s Federal System," Santa Cruz Department of Economics, Working Paper Series qt9gh5p65t, Department of Economics, UC Santa Cruz.
  6. Singh, Nirvikar, 2009. "India's Development Strategy: Accidents, Design and Replicability," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  7. Verma, Rubina, 2012. "Can total factor productivity explain value added growth in services?," Journal of Development Economics, Elsevier, vol. 99(1), pages 163-177.

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