{"id":34703,"date":"2018-10-31T12:57:58","date_gmt":"2018-10-31T07:27:58","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=34703"},"modified":"2018-10-31T12:57:58","modified_gmt":"2018-10-31T07:27:58","slug":"indias-great-leap-into-services","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/indias-great-leap-into-services\/","title":{"rendered":"India\u2019s great leap into services:\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/www.livemint.com\/Opinion\/fH67wjvToxPqy7imk8J6xN\/Indias-great-leap-into-services.html\"><span style=\"font-weight: 400;\">India\u2019s great leap into services<\/span><\/a><span style=\"font-weight: 400;\">:\u00a0<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>Context:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The emergence of e-commerce platform is an example of how digital revolution can lower transaction costs, increase productivity as well as make it more inclusive.<\/span><\/p>\n<p><b>India and China comparison:<\/b><b><br \/>\n<\/b><\/p>\n<p><span style=\"font-weight: 400;\">China and India are two of the fastest growing economies in the world. But they are following very different growth paths:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">China is an exporter of manufactured goods. <\/span><\/li>\n<li><span style=\"font-weight: 400;\">India has acquired a global reputation for exporting services, leapfrogging the manufacturing sector<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\"><b style=\"font-size: 1rem;\">Services sector in India<\/b><br \/>\n<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Services contribute more than manufacturing to India\u2019s output growth, productivity growth and job growth. India\u2019s growth pattern resembles that of the US. <\/span><\/li>\n<li><span style=\"font-weight: 400;\">This raises big questions that can services contribute more than manufacturing to output growth, productivity growth and job growth.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The new <\/span><b>industrial revolution and digital technological <\/b><span style=\"font-weight: 400;\">changes have changed the growth drivers in developing and developed countries. <\/span><\/li>\n<li><span style=\"font-weight: 400;\">These technological changes have enabled services to be the new driver of growth. <\/span><\/li>\n<li><span style=\"font-weight: 400;\">The digital revolution, b<\/span><b>y lowering transaction costs in services and overcoming problems of asymmetric information<\/b><span style=\"font-weight: 400;\">, has made services more dynamic than in the past.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The emergence of e-commerce platforms is an example of how digital revolution can lower transaction costs, increase productivity as well as make it more inclusive. <\/span><\/li>\n<li><b>Internet-based businesses or services<\/b><span style=\"font-weight: 400;\">, fixed up-front costs can be high initially, but once the physical infrastructure is in place, each additional customer, user, or transaction incurs very little extra cost.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Developing countries are relying more on services and less on manufacturing as drivers of growth and job creation.<\/span><\/li>\n<li>The relationship between income and economic structure has shifted over time, with countries across the income distribution <b style=\"font-size: 1rem;\">uniformly increasing the share of labour in service sector.<\/b><\/li>\n<li>While global growth convergence in manufacturing was a clear and strong trend some decades ago, it is no longer as strong in recent decades.<\/li>\n<li>Service show stronger growth convergence in recent decades.<\/li>\n<\/ul>\n<p><b> Services-led growth <\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Drivers of structural transformation and growth, either services-led growth or manufacturing-led growth, are similar but also changing.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">These include trade policy, urbanization, and investments in physical and human infrastructure, and are country-specific. <\/span><\/li>\n<li><span style=\"font-weight: 400;\">Global trade in goods has never fully recovered since the global financial crisis of 2007-08. <\/span><\/li>\n<li><span style=\"font-weight: 400;\">Services, which account for more than 70% of global output, are still in their infancy. The long-held view that services are non-transportable, non-tradable, and non-scalable no longer holds for a host of services that can be digitized.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The globalization of services provides new opportunities for India to find niches beyond manufacturing, where it can specialize, scale up, and achieve explosive growth. <\/span><\/li>\n<li><span style=\"font-weight: 400;\">As the services produced and traded across the world expand with globalization, the possibilities to develop based on services will continue to expand. <\/span><\/li>\n<li><span style=\"font-weight: 400;\">Global internet usage has grown globally. But this growth is much faster in developing countries. India alone adds one million new users every month to a booming mobile phone market.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Unlike, in the manufacturing sector, investment in human infrastructure, education and skills, matter much more.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">India needs accelerated investments in both physical and human infrastructure to support new drivers of growth and job creation.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">A young population is generally more connected with technological changes. So, India\u2019s demographic dividend should be an asset for the digital revolution and services-led growth.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Job growth is important, as ten million more people will join the labour force every year in India and Agriculture and manufacturing create fewer jobs today compared to the past. <\/span><\/li>\n<\/ul>\n<p><b>Digital revolution:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Expansion of digital technology can play a big role in improving rural access to banking.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Financial inclusion can be achieved through last-mile connectivity.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Financial services will help in medium-size cities, small towns, and villages to become new drivers of growth.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The digital revolution means it is possible for the services sector to deliver rapid growth and jobs more sustainably than the manufacturing sector.<\/span><\/li>\n<\/ul>\n<p><b>Government\u2019s initiatives for digital revolution:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The Governments\u2019 Digital India initiative is also proving a number of schemes for the benefit of the farmer. Some of the schemes in the agriculture sector include, \u2018mkisan\u2019, \u2018farmer portal\u2019, \u2018Kisan Suvidha app\u2019, \u2018Pusa Krishi\u2019, \u2018Soil Health Card app\u2019 , \u2018eNAM\u2019, \u2018Crop Insurance Mobile APP\u2019 , \u2018Agri Market app\u2019 and \u2018Fertilizer Monitoring App. <\/span><\/li>\n<li><span style=\"font-weight: 400;\">Keeping in mind women\u2019s safety, applications like \u2018Nirbhaya app\u2019 and \u2018Himmat app\u2019 have been launched that facilitate sending of distress calls. There are also apps for law enforcement agencies, courts and judiciary.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Thus, several initiatives by Government in various sectors are not only an attempt to revolutionise the society but also focus on utilizing the digital technologies to elevate the down trodden and bridge the gap between the different social strata.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p><b>Conclusion:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Digital revolution in India is significant as it promises to bring a multi-dimensional metamorphosis in almost all sectors of the society including service sectors. From digitization in governance to better health care and educational services, cashless economy and digital transactions, transparency in bureaucracy, fair and quick distribution of welfare schemes all seem achievable with the digital India initiative of the present Government.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">A look at Government initiatives in various sectors in past three years show how digital revolution in India is not only changing the way society functions but also bridging the gap between the haves and the have-nots of the country.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s great leap into services:\u00a0 Context: The emergence of e-commerce platform is an example of how digital revolution can lower transaction costs, increase productivity as well as make it more inclusive. India and China comparison: China and India are two of the fastest growing economies in the world. But they are following very different growth&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/indias-great-leap-into-services\/\">Continue reading <span class=\"screen-reader-text\">India\u2019s great leap into services:\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-34703","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34703","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=34703"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34703\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=34703"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=34703"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=34703"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}