The Service Sector As India's Road To Economic Growth?
Among fast growing developing countries, India is distinctive for the role of the service sector. However, skeptics have raised doubts about both the quality and sustainability of the increase in service sector activity and its implications for economic development. Using National Accounts Statistics and cross-county data, the authors show that the growth of services has been broad-based. They show that the growth of service sector employment is not simply disguised manufacturing activity. They also find that the skilled-unskilled mix of labour in the two sectors is becoming increasingly similar.