Sector Diversification

Challenges Facing India

Why is Sector Diversification so important for India?

What are the challenges faced by each sector ?

What are the solutions ?

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

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%

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%

• 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.

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%

Prepared by: Group 4

Arjun Parekh – 15020841070Abhishek – 15020841062Anjna – 15020841069Akshatha – 15020841065Saptarshi – 15020841105Praveen V N – 15020841096

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