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Re: manufacturing is the real mesure of economy's health not services -
11-08-2004, 05:42 PM
This is a debate that will go on for aeons to come................
Anyway I think that it's not mandatory that economy should be manufacturing heavy in this knowledge era.As Drucker famously put the coming years will be dominated by knowledge economies and not manufacturing heavy economies.And services will be a part of these knowledge economies in a big way.These days as consumerism is growing in such an exponential way and knowledge trade is growing leaps and bounds it will be services that will be contributing a big chunk to the GDP.India is moving to a stage where in more than a big chunk of GDP will be from services(Already It's 53 %).Typically all the major economies in the world like US
Japan reached the developed status after making their manufacturing sector robust.But all these economies are less dependant on manufacturing now.India is bypassing that stage in developmet and is becoming a service driven economy in a big way.The biggest advantage that India have is the huge human resourse pool.Catering to such a big population will throw open a lot of opprtunities.Even if 50% of our population becomes real middle class and with our per capita income growing and the traditional attitude of saving like ant is shed we will reach a stage wherein consumer spending will be a big driver of our economy.When more and more people gets the feel of higher standards of spending services will rule teh roost,but the catch will be in making sure that India doesn't completely ignore the basic manufacturing and agriculture which will be the indirect drivers of economy as we move up.
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ahem! (need i say more 
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