Normally countries shift from agriculture to industry and then later to services, but India shifted directly from agriculture to services. What are the reasons for the huge growth of services vis-a-vis industry in the country? Can India become a developed country without a strong industrial base?
Question source: mrunal.org
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Make in India turns 12 with a patchy scorecard · 25 September 2026 · Covers one part · use it in the body
Use Make in India's record to show that the policy attempt to build a stronger industrial base has raised output but not industry's structural share.
- Twelve years after its launch, manufacturing's share of GDP and employment is close to its 2014 level; the shift of workers from farms to factories has not happened at scale.
- Output has grown: manufacturing GVA rose about 10.9% a year from 2022-23 to 2025-26, and PLI drew over ₹2.40 lakh crore of investment by March 2026.
GDP grows 7.8% in April-June 2026, beating the RBI's 7% projection · 1 September 2026 · Covers one part · use it in the example
Use the quarter's sector data as current evidence of services leading growth, while manufacturing also accelerates.
- The tertiary sector grew 10% in Q1 2026-27, with financial, real estate and professional services at 12.1%.
- Manufacturing grew 9.2% against 8.3% a year earlier, lifting the secondary sector to 8.6%, while agriculture slowed to 3.6%.
- Services-led growth may not create enough jobs, so labour-intensive manufacturing and skilling are needed for growth to translate into employment.
Also related
- Production Linked Incentive schemes
PLI is an attempt to build the missing industrial base and global value chain links.