This article is based on work done for the ILO and an in-production ILO Discussion Paper entitled ‘Manufacturing, Services, Jobless Growth and the Informal Economy: Will Services be the New Engine of Indian Economic Growth?’, from the ILO Subregional Office for South Asia, New Delhi. Earlier versions have been presented at seminars in New Delhi and Geneva, and the authors have benefited greatly from the comments which were made. We also acknowledge our indebtedness to an anonymous referee, as well as an editor of this journal for helpful comments. The views expressed here are entirely those of the authors and should not be ascribed to the ILO.
Will Services be the New Engine of Indian Economic Growth?
Version of Record online: 6 DEC 2005
©Institute of Social Studies, 2005
Development and Change
Volume 36, Issue 6, pages 1035–1057, November 2005
How to Cite
Dasgupta, S. and Singh, A. (2005), Will Services be the New Engine of Indian Economic Growth?. Development and Change, 36: 1035–1057. doi: 10.1111/j.0012-155X.2005.00449.x
- Issue online: 6 DEC 2005
- Version of Record online: 6 DEC 2005
This article revisits the role of manufacturing and services in economic development in the light of a number of new phenomena: a faster growth of services than of manufacturing in many developing countries; the emergence of ‘de-industrialization’ in several developing countries, at low levels of per capita income; jobless growth in the formal sector, even in fast-growing countries such as India; and a large expansion of the informal sector in developing countries. Although this article examines these phenomena in the specific context of the Indian economy, the analysis has much wider application and implications, both for economic policy and for theories of growth and structural change.