Assistant Professor, Indira Institute of Management Science, Vishnupuri, Nanded, India
Most of the developing economies, in the last decade, have undergone a significant structural shift. The share of agriculture in total value added has significantly declined, correspondingly the share of manufacturing and services sector has increased with the share of manufacturing sector growing at a faster pace than that of services Sector. However, India is a unique case in this respect. Most of decline in the agricultural Sector in India has been picked up by the services sector and it now accounts for more Than 50 per cent of the gross domestic product. Given the growing significance of the services sector, the paper identifies some of the critical issues in India's service-led growth and provides policy insights with respect to them. The critical issues identified are: what explains growth of service sector in India; what are the reasons for lack of corresponding growth in employment in the service Sector; can service sector sustain its growth
Structural shift, agriculture, service sector, service-led growth, critical issues
