Q20.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.

India's economic trajectory uniquely shifted from agriculture directly to services, largely bypassing a robust industrial phase, diverging from conventional development paths.

Service Sector Boom

• Rapid IT/ITES expansion leveraged a skilled, English-speaking workforce.
• Liberalization, FDI, lower capital intensity, and easier entry barriers propelled this growth.

Industrial Sector Lag

• 'License Raj' legacies, inadequate infrastructure, rigid labor laws, and land acquisition challenges hampered manufacturing growth.

Industry's Importance

• Crucial for mass employment, value addition, sustained exports, economic stability, and reducing income disparities through strong linkages.

Service-Led Risks

• Risks 'jobless growth', increased inequality, and vulnerability to global demand shifts without a robust manufacturing sector.

A balanced approach is vital. Strengthening manufacturing via 'Make in India' and improving ease of doing business, alongside services, is crucial for inclusive, sustainable development.