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“India’s service-led economic growth has circumvented manufacturing-led growth phase”, examining the causative factors, suggest measures to boost the manufacturing sector in India.

TopicIndian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

6. “India’s service-led economic growth has circumvented manufacturing-led growth phase”, examining the causative factors, suggest measures to boost the manufacturing sector in India. (250 words)

Reference: The Hindu 

Why the question:

The question has come from opinion piece of the Hindu.

Key Demand of the question:

Discuss the role of the service sector and in what way India’s economic growth surpassed the manufacturing-led growth phase. Suggest solutions.

Directive:

Examine – When asked to ‘Examine’, we must look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.

Structure of the answer:

Introduction:

Discuss in brief the background of the sector-led growth in the recent decades. Give data/facts to support your answer.

Body:

After 1991, the share of industries stagnated at around 30% of GDP. This is mainly because the service sector has grown at a more rapid pace than industries. Give reasons for Service led growth. Why manufacturing sector couldn’t catch up as it did in the case of China or ASIAN countries.

Discuss then, how India’s system promoted service and discouraged industrialization in the later stages.

Suggest a solution to boost the manufacturing sector.

Conclusion:

Conclude by pointing out the issues that may arise due to such a skewed dependence on a single sector and suggest solutions to accommodate both manufacturing and service sectors in the coming future.