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Book part
Publication date: 26 March 2024

Manpreet Kaur and Shivani Malhan

Purpose: Manufacturing has always been considered a backbone for economic growth. It has been considered an imperative sector in the growth of an economy. This study aims to trace…

Abstract

Purpose: Manufacturing has always been considered a backbone for economic growth. It has been considered an imperative sector in the growth of an economy. This study aims to trace the long-term relationship between gross domestic product (GDP) and manufacturing sector in the context of Indian economy.

Need for the study: According to research, the significance of the manufacturing sector is waning over time. This chapter studies the long-term relationship between the GDP, an indicator of growth, and the manufacturing sector. Over the last few decades, the contribution of manufacturing has been stagnant in the GDP of India.

Methodology: The decadal growth of various sectors in the GDP of India is studied using time series analysis. This study used the data released by the Ministry of Statistics and Programme Implementation (MOSPI) from 1950–1951 to 2013–2014. The long-term relationship between the sector of manufacturing and the GDP is examined through the augmented Dicky–Fuller (ADF) test and auto-regressive distributed lag (ARDL) models.

Findings: The findings suggest that in the Indian scenario, there is no relationship for an extended period between the GDP and the manufacturing sector, which calls for further policy implications.

Practical implications: India, while having the world’s fastest-growing economy, must continue to take steps to attain high growth rates and long-term sustainability by reducing obstacles to the expansion of the service sector in addition to manufacturing. Manufacturing-led services are to be boosted through policy interventions.

Details

The Framework for Resilient Industry: A Holistic Approach for Developing Economies
Type: Book
ISBN: 978-1-83753-735-8

Keywords

Article
Publication date: 14 June 2019

Deb Kusum Das, Suresh Chand Aggarwal, Abdul Azeez Erumban and Pilu Chandra Das

The dynamics of economic growth in India continues to engage economists and still remains much debated. The trends and patterns of growth observed in India have seen acceleration…

Abstract

Purpose

The dynamics of economic growth in India continues to engage economists and still remains much debated. The trends and patterns of growth observed in India have seen acceleration in growth in Indian economy in the period following macroeconomic reforms and policy changes in investment and trade regimes. However, when and how did India transform itself from Hindu rate of growth to the present growth regime continues to be debated.

Design/methodology/approach

Using INDIA KLEMS data set, this study provides a distinctive perspective on India’s economic growth. A unique data set comprising 27 sectors of Indian economy at a disaggregate industry level for a period of 30 years, beginning 1980s, attempts to understand the dynamics of India’s growth from the contribution of industries that comprise the Indian economy.

Findings

This productivity data set offers a new way of analyzing the dynamics of growth including the sources of growth. The growth empirics allow evaluation of the relative significance of total factor productivity growth vis-a-vis input accumulation in accounting for output growth. In addition, the authors were able to document the industry contributions to aggregate growth. In this way, they were able to analyze the importance of the constituent industries within the different sectors of the economy − agriculture, manufacturing, construction and market, as well as non-market services in accounting for the observed growth in India. In conclusion, the industry perspective offers a new and analytical way of discerning new aspects of India’s march to higher growth regimes in post-1990s era.

Originality/value

A unique data set comprising 27 sectors of Indian economy at a disaggregate industry level for a period of 30 years, beginning 1980s, attempts to understand the dynamics of India’s growth from the contribution of industries that comprise the Indian economy.

Details

Indian Growth and Development Review, vol. 13 no. 1
Type: Research Article
ISSN: 1753-8254

Keywords

Book part
Publication date: 25 May 2022

Abhijeet Bag, Sarbapriya Ray and Mihir Kumar Pal

In India, economic reforms adopted in 1991 in form of LPG (Liberalization-Privatization-Globalization) removed numerous barriers to grow and offered opportunities to improve…

Abstract

In India, economic reforms adopted in 1991 in form of LPG (Liberalization-Privatization-Globalization) removed numerous barriers to grow and offered opportunities to improve productivity, particularly, for the manufacturing sector. But the rationale that manufacturing sector acted as main contributor to country's economic growth via GDP growth (called “engine of growth”) for a long time in India has been challenged now a day. The growing significance of the services sector across the world exhibits that at the present time, the services sector could become the new engine of economic growth in developing economies like India. The present study seeks to bring to light whether manufacturing is acting as an “engine of growth” at inter-state level in India or not and the cross section result indicates that potency of manufacturing growth and agricultural growth is gradually slowing down as a conforming part of economic growth and service sector is taking leading position in accelerating engine of growth in India.

Details

Globalization, Income Distribution and Sustainable Development
Type: Book
ISBN: 978-1-80117-870-9

Keywords

Book part
Publication date: 3 June 2021

Subhasis Bhattacharya

The contribution of the different sectors in gross domestic product (GDP) growth significantly implies the relative strength of the sectors over the country. The countries are…

Abstract

The contribution of the different sectors in gross domestic product (GDP) growth significantly implies the relative strength of the sectors over the country. The countries are classified by world agencies in terms of regional variation as well as income classification on the basis of the topographical location and international economic strength. This chapter considers the contribution of allied sectors over GDP considering manufacturing as a separate entity under the regional variation and different income classifications. It uses World Bank recent data set of 2010 and 2018 for cross-sectional analysis of GDP growth incorporating regional variation and income classification as discrete variables. Region-specific and income classification–specific regression identifies the variations in scores and changes in importance of different allied sectors.

Details

Productivity Growth in the Manufacturing Sector
Type: Book
ISBN: 978-1-80071-094-8

Keywords

Book part
Publication date: 19 July 2023

Anup Kumar Saha and Sreelata Biswas

Stable high growth in the service sector has made India free from the stigma of slow and steady ‘Hindu rate of growth’ of about 3.5% per annum during the first three decades of

Abstract

Stable high growth in the service sector has made India free from the stigma of slow and steady ‘Hindu rate of growth’ of about 3.5% per annum during the first three decades of independence. Service-led growth has placed India among the top performing giant economies in the world. India is now a 3 trillion USD (United States Dollar) economy in terms of Nominal GDP (IMF, 2020). Under this milieu, the chapter aims to examine whether the growth in the service sector in India is inclusive or not. The observations of the study have shown that the service sector has been growing at fast pace compared to the other two sectors, which makes the system into jobless status. The sectoral contribution of service sector to the GDP is increasing after the new economic reform of 1990, but the employment contribution is going down. So the country is now in the grip of ‘jobless’ growth, and the grip is strengthening because of some structural issues such as changes in consumers’ demand with rising per capita income. Further deepening of finance capital in the savings sphere of service sector has made the wide disconnect between the real economic activity and growth of finance capital. Revival of high linkage sectors with higher potential for employment growth, such as agriculture and manufacturing, can be game changer towards the goal of inclusiveness.

Details

Inclusive Developments Through Socio-economic Indicators: New Theoretical and Empirical Insights
Type: Book
ISBN: 978-1-80455-554-5

Keywords

Book part
Publication date: 26 March 2024

Satinder Singh, Rashmi Aggarwal and Baljinder Kaur

Purpose: The study aims to extract insights into five significant industries, pharmaceutical, space, defence, renewal energy, and information technology (IT), which have huge…

Abstract

Purpose: The study aims to extract insights into five significant industries, pharmaceutical, space, defence, renewal energy, and information technology (IT), which have huge potential to make India achieving a five trillion-dollar economy in the future.

Design/methodology/approach: The authors focus on future-driven industries which are not only making India a third highest gross domestic product (GDP) producer country but also reviewing the different aspects of these industries and how they can assist India in achieving a five trillion-dollar economies along with determining India’s self-reliance through different governments initiatives in this direction.

Findings: The findings highlight the importance of inclusiveness of policymakers, stakeholders, private players, foreign investors, and the masses. Their significant contributions especially in the pharmaceutical, space, defence, renewal energy, and IT sectors in terms of creativities, innovations, intellect, executions, implementations, and improvements can assist India in achieving its five trillion-dollars economy soon.

Practical implications: This study offers (1) convincing insights into five key industries, pharmaceutical, space, defence, renewal energy, and IT, which have huge potential to increase total GDP volume shortly and (2) the investment areas for the masses where they can see their world not only self-reliant but also will see huge growth in their invested amount in these industries in future.

Originality/value: The insights of five key industries, pharmaceutical, space, defence, renewal energy, and IT, highlight that India has the potential to achieve a five trillion-dollar economy in the future; however, it does not ignore the significant contribution of other industries in making of total GDP.

Details

The Framework for Resilient Industry: A Holistic Approach for Developing Economies
Type: Book
ISBN: 978-1-83753-735-8

Keywords

Article
Publication date: 16 October 2017

Vivek Soni, Rashmi Anand, Prasanta Kumar Dey, Ambika Prasad Dash and Devinder Kumar Banwet

The purpose of this research paper is to assess efficacy of e-governance implementation, influenced under the Indian-EU (European Union – EU) strategic dialogue. For the same…

Abstract

Purpose

The purpose of this research paper is to assess efficacy of e-governance implementation, influenced under the Indian-EU (European Union – EU) strategic dialogue. For the same purpose, this study aims to analyse and measure penetration level of information and communication technology (ICT) applications across ten select gross domestic product-dependent sectors (gross domestic product – GDP) in Indian economy.

Design/methodology/approach

Multi-criteria decision-making (MCDM) approach of PROMETHEE, using its partial and complete versions in fuzzy environment, is applied. The approach assesses e-governance efficacy in various sectors, which is chosen based on their contribution to GDP, where criteria values are assigned by expert opinions, feedback is received and lessons are learnt from training and initiatives taken under the Digital India programme launched by the Government of India. These criteria related to IT policy implementation, cyber security breaches, IT infrastructure development initiatives in select sectors are identified. Later, sectors outranking results have been highlighted using both fuzzy set theory along with PROMETHEE (F-PROMETHEE) and its visual application.

Findings

On applying F-PROMETHEE, studies found that industrial, railways, health and finance and education sectors outrank in their high merit orders. Contrary, outranking shows that agriculture, defence and aerospace sectors should be more open and accessible to adopt ICT applications in order to promote e-governance processes and their implementation to make e-services available to common citizens. For better interpretation of results, graphical analysis for interactive aid is used to present the analyses.

Research limitations/implications

Research study was found useful in the assessment of ICT penetration level in to support Indo-EU relations, where PROMETHEE method is used to outrank sectors alternatives. Criteria are also weighted using fuzzy scale, and the impact of criteria on all alternatives has also been assessed. MCDM framework addresses that subjectivity lies in sectors to implement ICTs bases services. However, few other MCDM frameworks, methods such as COPRAS, GST, GRA, SAW and SWARA, can be used for the same purpose.

Practical implications

Sectors alternative involve high degree of complexity to adopt ICT applications for smooth e-governance and seek effective decision-making for investment prioritization and future development. This study also aims to address cyber security concerns of policymakers. Outranking methods of F-PROMETHEE are able to address the criteria-to-criteria impact and support decision-making in a more precise way.

Social implications

This study is inspired from the strategic implementation of the framework of the e-Government Action Plan 2016-2020 of the EU. The findings from the paper can provide referential support to the Indian Government and policymakers to support information delivery, implement cyber security policies and various sector developments.

Originality/value

This research study can act as a strong base in the decision-making process in conflicting situations of e-governance in India. This study not only can synergize conflicting ideas of various stakeholders, academicians in the Indian IT-sector but also can act as support to administrators and the policymakers to monitor the status of the India-EU Information Society Dialogue.

Details

Transforming Government: People, Process and Policy, vol. 11 no. 4
Type: Research Article
ISSN: 1750-6166

Keywords

Article
Publication date: 12 November 2018

Moinak Maiti

The purpose of this study is to detail about the India’s service sector with different aspects of services and the opportunities or challenges that lie within it.

Abstract

Purpose

The purpose of this study is to detail about the India’s service sector with different aspects of services and the opportunities or challenges that lie within it.

Design/methodology/approach

Preliminary part of the study covers the following details of the India’s services sector: services gross domestic product (GDP), individual states/union territories’ services contributions, services foreign direct investment (FDI), services export, services employment, services inflation and overall service performance. Then the study compares India’s services sector performances with the top 15 services performance countries in the world in terms of GDP.

Findings

Study found R&D services, legal services, media and broadcasting services and “internal trade and repairs services” to be the potential services sub-sectors that will boost the services sector growth in future. Finally, the study concluded with the implication of the present study finding/results for the present Indian Government policies related to the services, trade, FDI for economic growth and employment.

Practical implications

The study has significant public policy content. The research focuses on the economic and commercial impact, mainly by practice.

Originality/value

The paper is original and brings out some valuable finding that will help the policymakers and economists to make policy decision regarding India’s services: sector, trade and employment. The study has found R&D services, legal services, media & broadcasting services and internal trade and repairs services as the potential services sub-sectors which are new and not addressed by any other studies.

Details

International Journal of Law and Management, vol. 60 no. 6
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 28 August 2019

Vinoj Abraham

This paper aims to analyse the observed “jobless growth” between 1993-1994 and 2011-2012 based on structural transformation to explain why the elasticity of employment generation…

Abstract

Purpose

This paper aims to analyse the observed “jobless growth” between 1993-1994 and 2011-2012 based on structural transformation to explain why the elasticity of employment generation to gross domestic product growth has declined during this period.

Design/methodology/approach

This paper uses the job generation and growth decomposition tool to quantify the effects of inter-sectoral mobility of workers, intra-sectoral productivity changes and demographic changes on per capita value added growth. Alternative scenarios are generated to simulate the effect of higher female labour participation rates.

Findings

Structural transformation in India between 1993-1994 and 2011-2012 was characterised by increasing labour productivity in most sectors, inter-sectoral mobility of workers and a decline in the employment rate. About 81 per cent of the increase in per capita value added was because of a rise in labour productivity; about 24 per cent was because of inter-sectoral shifts of labour; and about 9 per cent because of demographic changes. The decline in the employment rate had a negative effect of −14.20 per cent. The process of transformation was unconventional. First, labour productivity growth was the highest in the service sector and second, the bulk of the movement of labour was to the construction sector.

Research limitations/implications

This paper focusses only on the quantitative dimensions of employment and offers no new explanations why female labour force participation declined.

Originality/value

This paper offers a new perspective on the debate of jobless growth focussing on structural transformation.

Details

Indian Growth and Development Review, vol. 12 no. 2
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 16 August 2021

Arthur Acolin, Marja Hoek-Smit and Richard K. Green

This paper aims to document the economic importance of the housing sector, as measured by its contribution to gross domestic product (GDP), which is not fully recognized. In

Abstract

Purpose

This paper aims to document the economic importance of the housing sector, as measured by its contribution to gross domestic product (GDP), which is not fully recognized. In response to the joint economic and health crises caused by the COVID-19 pandemic, there is an opportunity for emerging market countries to develop and implement inclusive housing strategies that stimulate the economy and improve community health outcomes. However, so far housing does not feature prominently in the recovery plans of many emerging market countries.

Design/methodology/approach

This paper uses national account data and informal housing estimates for 11 emerging market economies to estimate the contribution of housing investments and housing services to the GDP of these countries.

Findings

This paper finds that the combined contribution of housing investments and housing services represents between 6.9% and 18.5% of GDP, averaging 13.1% in the countries with information about both. This puts the housing sector roughly on par with other key sectors such as manufacturing. In addition, if the informal housing sector is undercounted in the official national account figures used in this analysis by 50% or 100%, for example, then the true averages of housing investments and housing services’ contribution to GDP would increase to 14.3% or 16.1% of GDP, respectively.

Research limitations/implications

Further efforts to improve data collection about housing investments and consumption, particularly imputed rent for owner occupiers and informal activity require national government to conduct regular household and housing surveys. Researcher can help make these surveys more robust and leverage new data sources such as scraped housing price and rent data to complement traditional surveys. Better data are needed in order to capture housing contribution to the economy.

Practical implications

The size of the housing sector and its impact in terms of employment and community resilience indicate the potential of inclusive housing investments to both serve short-term economic stimulus and increase long-term community resilience.

Originality/value

The role of housing in the economy is often limited to housing investment, despite the importance of housing services and well-documented methodologies to include them. This analysis highlights the importance of housing to the economy of emerging market countries (in addition to all the non-GDP related impact of housing on welfare) and indicate data limitation that need to be addressed to further strengthen the case for focusing on housing as part of economic recovery plans.

Details

International Journal of Housing Markets and Analysis, vol. 15 no. 5
Type: Research Article
ISSN: 1753-8270

Keywords

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