2014 GS3 MAINS PYQ SOLVED
India’s economic transition skipped the typical industry-led growth, moving directly from agriculture to services. This unusual pattern raises questions about sustainable development and the role of industry.
1.Reasons for Growth of Services Over Industry
i.Colonial Legacy: Limited industrialization under British rule left India with a weak industrial base post-independence.
ii.Liberalization Impact: Post-1991 reforms favoured IT, telecom, and financial services, driving rapid service sector growth. Example: IT services contribute 9% to GDP (NASSCOM, 2022).
iii.Skill Availability: A large English-speaking workforce enabled success in global IT and BPO markets. Example: India’s IT-BPM sector exports reached $227 billion in 2022-23.
iv.Infrastructure Gaps: Insufficient power, transport, and logistics deterred industrial expansion.