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Will Services be the New Engine of Economic Growth in India?

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  • Ajit Singh
  • Sukti Dasgupta

Abstract

This paper revisits the role of manufacturing and services in economic development in the light of the following new facts: (a) a faster growth of services than that of manufacturing in many developing countries (DCs). (b) The emergence of “de-industrialisation†in several DCs at low levels of per capita income. (c) Jobless growth in the formal sector even in fast growing countries such as India and (d) a large expansion of the informal sector in both fast growing and slow growing DCs. Although the paper examines these phenomena in the specific case of the Indian economy, the analysis has much wider application, both for economic policy and for theories of growth and structural change.

Suggested Citation

  • Ajit Singh & Sukti Dasgupta, 2016. "Will Services be the New Engine of Economic Growth in India?," Working Papers id:11176, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:11176
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    References listed on IDEAS

    as
    1. Ute Pieper, 2003. "Sectoral regularities of productivity growth in developing countries--a Kaldorian interpretation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 27(6), pages 831-850, November.
    2. Martin Neil Baily & Robert Z. Lawrence, 2004. "What Happened to the Great U.S. Job Machine? The Role of Trade and Electronic Offshoring," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 35(2), pages 211-284.
    3. Mrs. Poonam Gupta & Mr. James P. F. Gordon, 2004. "Understanding India’s Services Revolution," IMF Working Papers 2004/171, International Monetary Fund.
    4. Singh, Ajit, 1977. "UK Industry and the World Economy: A Case of De-industrialisation?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 1(2), pages 113-136, June.
    5. Mr. Dani Rodrik & Mr. Arvind Subramanian, 2004. "Why India Can Grow At 7 Percent a Year or More: Projections and Reflections," IMF Working Papers 2004/118, International Monetary Fund.
    6. Singh, Ajit, 1989. "Third World Competition and De-industrialisation in Advanced Countries," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 13(1), pages 103-120, March.
    7. A. P. Thirlwall, 2002. "The Nature of Economic Growth," Books, Edward Elgar Publishing, number 2579.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    manufacturing; service; economic development; developing country; de-industrialized; per capita income; informal sector; developing country; Indian economy; economic policy; structural change;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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