Manufacturing versus services: It’s not one or the other
1 year ago

Manufacturing versus services: It’s not one or the other

Live Mint  

An economy produces two broad types of output: farm and non-farm. Whether the manufacturing or services sector grows faster depends on the policy environment, domestic and global demand, and the sector’s comparative advantage. Second, highly skilled services, like in the information technology sector, depend less on physical infrastructure such as roads and ports for production and delivery, and India has been a laggard in such infrastructure. Moreover, even when the growth of high-skill services delivers higher average incomes, these gains are naturally skewed towards workers directly employed in those sectors. In a recent NBER paper titled ‘Growing like India: Unequal effects of service-led growth’ published this year, Fan, Peters and Zilibotti show that productivity growth in services was an important driver of rising living standards between 1987 and 2011 in the country.

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India’s services sector growth rises to a four-month high in December
Trending News
1 week, 2 days ago

India’s services sector growth rises to a four-month high in December

Live Mint  

New Delhi: Business activity gained momentum in December driven by demand buoyancy in the services sector, rising to a four-month high during the month, even as manufacturing growth slowed. India’s finance ministry recently said it expects the economy to grow at 6.5% in 2024-25, while the Reserve Bank of India estimates a 6.6% growth aided by rural consumption, government investment, …

How India’s services sector made history as goods exports floundered
1 week, 3 days ago

How India’s services sector made history as goods exports floundered

Live Mint  

Preliminary data indicates that India’s services exports exceeded its goods exports for November 2024. At the global level, while India’s goods exports have been one of missed opportunities, services exports have an undertone of opportunity taken, driven by IT and software services. India’s share in global services exports has consistently exceeded its share in global goods exports since at least …

Success with services could make the elephant dance
3 months, 3 weeks ago

Success with services could make the elephant dance

Live Mint  

The differences in the growth patterns of China and India are very striking. Labor productivity levels in services are well above those in industry, and productivity growth in service sectors in India match labour productivity growth in China’s manufacturing sectors. There is no ‘Dutch disease’ facing India’s services sector, as service prices have not fallen with an increase in its …

Three imbalances on road to India's economic rise
7 months, 1 week ago

Three imbalances on road to India's economic rise

China Daily  

Indian Prime Minister Narendra Modi is preparing for a third term in office, but the just-concluded general election was different from the previous ones in that the overall voter turnout was lower than the previous elections, leaders of some political parties showed "election fatigue" and many voters might have voted against Modi. Although New Delhi proposed the "Make in India …

Three imbalances on road to India's economic rise
7 months, 1 week ago

Three imbalances on road to India's economic rise

China Daily  

Indian Prime Minister Narendra Modi is preparing for a third term in office, but the just-concluded general election was different from the previous ones in that the overall voter turnout was lower than the previous elections, leaders of some political parties showed "election fatigue" and many voters might have voted against Modi. Although New Delhi proposed the "Make in India …

Bridging the Gap: How India Can Unlock the Potential of its Service Sector - News18
7 months, 2 weeks ago

Bridging the Gap: How India Can Unlock the Potential of its Service Sector - News18

News 18  

The service sector has undeniably been the primary driver of India’s growth since the year 2000. Skill Gap In India, the skill gap in the labour force is a significant challenge, with only 51 per cent of the youth deemed employable due to a lack of necessary skills. Efforts to bridge this gap must include public-private partnerships, such as the …

Manufacturing versus services: A false binary
10 months, 3 weeks ago

Manufacturing versus services: A false binary

Hindustan Times  

The debate around India’s policy focus — whether it should be on manufacturing or services — is once again heating up. India’s share of global services exports is currently ~4.4%, and the country is already the largest provider of telecom and information services. The other pillar of the country’s export strategy — services exports — is where India already has …

Book Excerpt | India's growth story diverges from the pan-Asian narrative
1 year ago

Book Excerpt | India's growth story diverges from the pan-Asian narrative

Deccan Chronicle  

Asian export-led growth accelerated the typical shift in labour between sectors, but the transformation was similar to the one that rich countries had already gone through. Thus, the manufacturing share of employment in an economy as a function of its income per person first increases as workers move from agriculture to manufacturing, then decreases as they move from manufacturing to …

Bharat’s Model of Economic Growth Cannot Be Built on Western Models - News18
1 year, 2 months ago

Bharat’s Model of Economic Growth Cannot Be Built on Western Models - News18

News 18  

Policymaking in the agriculture space is rife with several myths, misconceptions, and assumptions. A NITI Aayog paper from 2022 highlights four structural paths that farmers could find themselves on: the Farmer Developing Path, the Lewis Path, the Lewis Trap, and the Farmer Excluding Path. The Indian agricultural sector employs 44 per cent of the labour force in the country while …

India's services exports post fastest growth in 9 years
1 year, 4 months ago

India's services exports post fastest growth in 9 years

Deccan Chronicle  

NEW DELHI: India's services activity continued to expand in August, though the purchasing managers' index or PMI services dropped to 60.1 in the month from the previous reading of 62.3 in July. However, the survey also showed that hiring activity across India's service economy continued to expand halfway through the second fiscal quarter. Commenting on the survey, Pollyanna De Lima, …

Promises to keep, miles to go: Can Karnataka’s new government think out of the box?
1 year, 7 months ago

Promises to keep, miles to go: Can Karnataka’s new government think out of the box?

The Hindu  

Published : Jun 02, 2023 16:22 IST - 13 MINS READ One question being discussed intensely since the Congress’ sweeping win in the Karnataka Assembly election is whether the State’s finances will be capable of shouldering the burden of welfare measures promised in the party manifesto. This is expected to continue; even the Centre’s Economic Survey had said that Karnataka …

At the root of India’s manufacturing challenge
1 year, 7 months ago

At the root of India’s manufacturing challenge

The Hindu  

The issue of manufacturing or services as the desirable path for India’s economy makes the rounds in public fora periodically. In the early part of this century, when India’s software exports were booming, it had been asked why India’s services sector should not leapfrog over manufacturing to propel the economy forward. Unimpressive record After the economic reforms of 1991, the …

Service firms on recovery path, manufacturing still a concern - The Hindu
1 year, 10 months ago

Service firms on recovery path, manufacturing still a concern - The Hindu

The Hindu  

The share of urban consumers who were pessimistic about the Indian economy continued to decline in January 2023 though more than half of them said the situation has worsened compared to a year ago. Chart 1A shows the responses from a Reserve Bank of India survey conducted across 19 major cities between January 2 and 11. Chart 2 shows the …

Destination India: Services Sector Is The Next Big Opportunity To Achieve $5-Trillion Economy
2 years, 2 months ago

Destination India: Services Sector Is The Next Big Opportunity To Achieve $5-Trillion Economy

ABP News  

India has made tremendous progress over a period of time. From being a predominantly agrarian economy, India has transformed into a services sector-oriented economy that contributes over 50 per cent to the GDP. Around 697,453 foreign tourists came for medical treatment to India in 2019, making up 6.4 per cent of the total foreign tourist arrivals in India. During 2010-2019, …

Services sector growth hit 6-month low in September
2 years, 3 months ago

Services sector growth hit 6-month low in September

The Hindu  

India’s services sector stuttered in September as new business and output growth grew at the slowest pace since March 2022, as per the S&P Global India Services Purchase Managers’ Index which dropped to 54.3 from August’s robust 57.2 level. September marked the 14th successive month of growth in services sector activity, but price pressures, an increasingly competitive environment and ‘unfavourable …

Should India choose manufacturing over services?
2 years, 3 months ago

Should India choose manufacturing over services?

The Hindu  

Earlier this week, the former Governor of the Reserve Bank of India, Raghuram Rajan, questioned the Central government’s production-linked incentive scheme, arguing that it works against the interests of Indian consumers. In doing so, he revived the larger debate on the government’s efforts to promote the country’s manufacturing sector through subsidies, and on its relative importance vis-a-vis the services sector. …

Collect comprehensive data on the services sector
2 years, 4 months ago

Collect comprehensive data on the services sector

Hindustan Times  

The Purchasing Managers’ Index for services clocked 57.2 in the month of August, significantly higher than the 55.5 value for July. PMI services were higher than the August numbers in every month of the quarter ending June. None of this is to argue that PMI numbers are fudged or parts of India’s services economy are not showing extraordinary dynamism. Collecting …

India’s services sector activity in November registers second-fastest pace of growth since July 2011: Survey
3 years, 1 month ago

India’s services sector activity in November registers second-fastest pace of growth since July 2011: Survey

The Hindu  

India’s services sector activity expanded at the second-fastest pace in more than a decade during November, driven by sustained rise in new work and improvement in market conditions, a monthly survey said on Friday. “The recovery of the Indian service sector was extended to November, with a robust improvement in sales enabling the second-fastest rise in business activity in nearly …

Explained: Why India's economy needs a manufacturing push
3 years, 4 months ago

Explained: Why India's economy needs a manufacturing push

India Today  

India’s economy needs a strong manufacturing push as the nation’s dominant services sector struggles to return to normalcy after two deadly waves of the Covid-19 pandemic. Read | Covid-19: India’s services activity in May contracts for 1st time in 8 months SLOW PROGRESS IN MANUFACTURING Even before the pandemic brought the economy to a standstill in 2020, growth in India’s …

Manufacturing gets the Centre’s incentive nudge
4 years, 2 months ago

Manufacturing gets the Centre’s incentive nudge

Live Mint  

Despite several measures taken by the Centre to boost manufacturing, it is the services sector that has contributed most to growth. A relatively low rate of productivity and lack of adequate supply of electricity at competitive rates have also kept growth in India’s manufacturing sector depressed over the years. Lately, the government also took steps towards straightening out structural issues …

Growth of Manufacturing Sector is Key to Creation of Jobs in India, Says Maruti Suzuki Chairman
4 years, 4 months ago

Growth of Manufacturing Sector is Key to Creation of Jobs in India, Says Maruti Suzuki Chairman

News 18  

The coronavirus pandemic is creating a greater awareness among people in India that this is the time to make radical changes and take steps for faster growth of the manufacturing sector and the economy, Maruti Suzuki India Chairman R C Bhargava said on Wednesday. Addressing shareholders at the company's annual general meeting, he said the key to grow the economy …

Misses in manufacturing
4 years, 10 months ago

Misses in manufacturing

The Hindu  

ONE of the highlights of the latest Economic Survey is its optimism that India will be able to create 40 million well-paid jobs in manufacturing by 2025. According to the recent Periodic Labour Force Survey, manufacturing employment in India in 2017-18 was only 60.2 million, which was 12.8 per cent of the country’s total workforce in that year. According to …

Growth in India's service sector at 7-year-high in January 2020
4 years, 11 months ago

Growth in India's service sector at 7-year-high in January 2020

Op India  

The growth of India’s service sector has hit a seven-year high in January, raising hopes of an economic recovery on the basis of strong domestic demand, stated a survey released on Wednesday. As reported by Business Today, the IHS Markit has released its India Services Business Activity Index which showed that the index increased to 55.5 in January compared to …

India’s services growth lose pace in August : Survey
5 years, 4 months ago

India’s services growth lose pace in August : Survey

Live Mint  

New Delhi: India’s services sector expanded in August but at a slower rate compared with July, according to a private survey of 400 businesses engaged in consumer, transport, information, communication, finance, insurance, real estate and business services. The IHS Markit India services business activity index retreated from 53.8 in July to 52.4 in August, signalling a slower rate of output …

To create jobs, an industrial policy focused on labour-intensive industries is key
5 years, 7 months ago

To create jobs, an industrial policy focused on labour-intensive industries is key

Hindustan Times  

Manufacturing contributed in 2017 only about 16% to India’s GDP, stagnating since economic reforms began in 1991. Manufacturing contributed in 2017 only about 16% to India’s GDP, stagnating since economic reforms began in 1991 This is the opposite of what was achieved in Japan, Korea, Taiwan and China. By contrast, in India the labour intensive manufacturing sectors like food processing, …

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