Why did India shift from agriculture to services and not industry?

India cannot be a developed country without a strong industrial base because of the following reasons: Solid industrial base is required for growth of both agriculture and service sector. The demand of services and goods cannot be met for such a huge population until a solid industrial base in country itself.

What is a reason for the economic shift from manufacturing to service?

According to this theory, the shift towards services takes place mainly due to the service sector’s lower productivity, higher costs and thus higher relative prices than those in the manufacturing sector. In other words, the shift to services happens because the service sector is stagnant and less progressive.

What are the reasons for the growth of services in India?

Main reasons behind the growth of services include rapid urbanization, the expansion of the public sector and increased demand for intermediate and final consumer services. Access to efficient services has become crucial for the productivity and competitiveness of the entire economy.

Why India shifted directly from agriculture to services UPSC?

Reasons of jumping from primary sector to tertiary sector: India had a strong and bitter colonial experience and a taste of capitalism’s exploitative nature. British colonized India to serve as a source of raw material for its fast developing industries.

What is the shift from agriculture to industry called?

Industrialization is the process by which an economy is transformed from a primarily agricultural one to one based on the manufacturing of goods. Individual manual labor is often replaced by mechanized mass production, and craftsmen are replaced by assembly lines.

What are some factors that have facilitated the shift to a service economy?

What are some of the factors that have facilitated the shift to a service economy? Expectations of customers, changes and shifts in consumer behavior, use of technology in customer service transactions that used to be done face-to-face.

Why is India shifting from agriculture to service sector?

Normally countries shift from agriculture to industry and then later to services, but India shifted directly from agriculture to services. India has immense human resources, that are well-educated and fluent in English, and labour is also cheap, thus propelling the service sector.

Is India’s service led growth sustainable?

Numerous studies since 2000s have shown that services induced growth of GDP of India is feasible. The service-led growth model is sustainable not only from the economic perspective but from social and environmental perspectives as well.

What is the shift from agriculture to services in India?

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? – GKToday

Why did the Indian manufacturing sector and crafts industry break down?

Indian manufacturing sector and crafts industry broke down due to competition from cheap European products and exploitative policies of British , forcing people to move from industries to land-based activities. British simultaneously introduced western education and service sector in India so as to manage their colonial affairs smoothly.

How did India leapfrog from an agrarian economy to a service economy?

The natural economic progression of a nation goes from agrarian economy, to industrial economy to a service economy. India leap-frogged from an agrarian economy to a service economy. India has immense human resources, that are well-educated and fluent in English, and labour is also cheap, thus propelling the service sector.

Why is India’s non-agricultural labor force mostly employed in informal services industry?

So to answer your question, India’s non-agricultural labor force is mostly employed in informal services industry because there is nowhere else to go. The pace of industrial development (or manufacturing growth) has just not kept up with rural-urban migration for reasons too well known to reiterate here.