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“India’s economic growth has circumvented manufacturing led growth phase”, examine the statement with causative factors.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

4. “India’s economic growth has circumvented manufacturing led growth phase”, examine the statement with causative factors. (250 words)

Reference: The Hindu 

Why the question:

The question is about discussing how India’s economic growth has circumvented manufacturing led growth phase in the country.

Key Demand of the question:

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

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 Industrial growth from past to present.

Body:

Start by highlighting the fact that manufacturing kept increasing its share as a percentage of GDP from 1951-1991. In initial growth phase as public sector oriented growth with focus on industrialization was practiced. But after 1991, share of industries has stagnated around 30% of GDP. This is mainly because service sector has grown at a more rapid pace than industries.

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

Elaborate the causative factors with examples.

Conclusion:

Conclude by pointing out at 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 coming future.