Understanding India’s Services Revolution

 
Author/Editor: Gordon, James P. F. ; Gupta, Poonam
 
Publication Date: September 01, 2004
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: This paper analyzes the factors behind the recent growth of India's services sector. The high growth of services output in the 1990s was mostly due to the rapid expansion of communication, banking, business services (including the IT sector) and community services. While factors such as a high income elasticity of demand for services, increasing input usage of services by other sectors, and rising exports, were important in boosting services growth in the 1990s, supply side factors including reforms and technological advances also played significant roles. Going forward, the growth potential of Indian services exports is well known, but the paper also finds considerable scope for growth in the Indian service economy provided that deregulation continues. In addition, the paper shows that employment growth in the Indian services sector has been quite modest, thus underscoring the need for industry and agriculture to also grow rapidly.
 
Series: Working Paper No. 04/171
Subject(s): Economic growth | India | Trade liberalization | Employment

Author's Keyword(s): Services | sectoral shares | balanced growth | splintering | liberalization
 
English
Publication Date: September 01, 2004
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA1712004 Pages: 35
Price:
US$15.00 (Academic Rate:
US$15.00 )
 
 
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