Most of India’s rapid growth is due to an increase in ‘absolute value’ added by the service sector of the country.
Authors
Deepanshu Mohan, Associate Professor of Economics and Director, Centre for New Economics Studies (CNES), Jindal School of Liberal Arts and Humanities, O.P. Jindal Global University, Sonipat, Haryana, India.
Aniruddh Bhaskaran, Research Analyst, Centre for New Economics Studies (CNES), Jindal School of Liberal Arts and Humanities, O.P. Jindal Global University, Sonipat, Haryana, India.
Hemang Sharma, Research Analyst, Centre for New Economics Studies (CNES), Jindal School of Liberal Arts and Humanities, O.P. Jindal Global University, Sonipat, Haryana, India.
Soumya Marri, Research Analyst, Centre for New Economics Studies (CNES), Jindal School of Liberal Arts and Humanities, O.P. Jindal Global University, Sonipat, Haryana, India.
Malhaar Kasodekar, Research Analyst, Centre for New Economics Studies (CNES), Jindal School of Liberal Arts and Humanities, O.P. Jindal Global University, Sonipat, Haryana, India.
Summary
This article, extrapolating our key findings from a recent Centre for New Economics Studies (CNES) research analysis, involves a detailed analysis of India’s growth trajectory over the last three decades comparing its growth trends with other industrially developed economies across sectors like manufacturing, services, banking, etc., and with other like-minded group of nations.
Providing a background context is vital in shaping the design and framework of any comparative analysis. The absurdity of designing/making growth-centered economic comparisons must also be noted.
For example, this year, Bangladesh’s per capita income overtook India’s, in terms of size. But also India overtook the United Kingdom to become the fifth-largest economy in the world.
How do we make sense of both these facts? Let’s see.
Ex-Post 1990s
Any critical macro-performance analysis for the Indian economy, since the 1990s, contains two distinct analytical parts.
For a simplistic version of growth composition, it is oft pertinent to look at the nation’s macro-growth scenario from an income-side approach and an expenditure-side approach. There are issues with these approaches, but it is important, directionally, to get a sense of what the numbers say.
Published in: The Wire
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