India’s service revolution has shown that industrialization is not the only route to rapid economic development. Do you agree with this view? Comment (200 Words)
Refer - Business Line
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
· During the last two decades, services have contributed more than manufacturing to India’s output growth, productivity growth, job growth, and poverty reduction.
· A majority of FDI inflows into India are concentrated in the service sector. India has outperformed China on productivity growth rate in services.
· Although global trade in goods has never fully recovered since the global financial crisis in 2007, this is not the case with trade in services, which has exploded.
· While both traditional and modern service exports from India have exploded, what is even more striking is that the share of modern service exports has increased at a much faster pace in India compared to the US.
· The future of the service revolution will be in the tier two and tier three cities. Limitations to growth are mostly on the supply side, due to limited availability of employees.
· The private sector in modern services will need to play a bigger role to promote public-private partnership models to scale up investments in education.
· India can create a dynamic virtuous circle of higher education leading to the growth of service exports, leading back to faster growth, and more investments in higher education.
Susmitha T 3 years
Please review
IAS Parliament 3 years
Good attempt. Keep Writing.
