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Sector Diversification
Challenges Facing India
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Why is Sector Diversification so important for India?
What are the challenges faced by each sector ?
What are the solutions ?
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Why can’t we make ‘Service’ as our only focus???
Why is sector diversification so much important for India ???
CountryService
Sector to GDP (%)
Employment from Service Sector (%)
Agriculture Sector to GDP (%)
Employment from
Agriculture Sector (%)
USA 77.7 81 1.2 2
Italy 73.9 69 2 4
Japan 73.1 70 1.2 4
Germany 68.4 70 0.9 2
India 60 25 14 47
Comparison of contribution from Services & Agriculture sector and amount of employment it generates, for different
countries.
Source: World Bank data (2013-14)And Exhibit 3 of Case Study
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Challenges faced by Agricultural Sector
• Technology – Irrigation, Lack of Mechanization, Quality seeds.
• Infrastructure – Warehousing, Transportation, & Electricity. (Exhibit 9)
• Environmental – Weather fluctuation and irregular rainfall.• Legal – Some states like Gujarat, Maharashtra
allow only farmers to buy agricultural land.
Contribution to GDP: 14% Employment it generates: 47%
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Service Sector – The Bloom
• Growth of Service Sector – Low Cost, Technically Sophisticated, Proficiency in English
• G.E.- John F. Welch Technology Center. Company generated a revenue of US$2.8b in 2007 alone.
Contribution to GDP: 60% Employment it generates: 25%
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• Service sector – Primary driver of economic growth in India.
• Senior official in UPA Coalition – Dependence on service sector is not sustainable, Manufacturing would be next and most enduring engine of growth.
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Challenges faced by Industry Sector
• Legal – Land acquisition problems, Bureaucracy (Exhibit 9)
• Infrastructure – Transportation, Telecommunication, & Electricity.
• Economic – Investment Environment (Regional Instability)• Social – Job skill mismatch, High skilled graduates
emigrated from India. (Education)• Technology – Electronic Industry (Processor chip
manufacturing)
Contribution to GDP: 26% Employment it generates: 28%
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Prepared by: Group 4
Arjun Parekh – 15020841070Abhishek – 15020841062Anjna – 15020841069Akshatha – 15020841065Saptarshi – 15020841105Praveen V N – 15020841096
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Thank You