Services constitute 55% of GDP of India while the industrial sector just contributes 27%.

Reasons for growth of Services: 1) Rise of the IT industry → (72K issue) 2) Stagnation of manufacturing → (17%) of GDP 3) English speaking population → export of BPO services 4) Incentivization by the government post-LPG reforms → liberalization of FDI in services, while industry was mainly for MSMEs 5) Demand for office white-collar jobs among India youth 6) Rise of IITs and IIMs leading the

Services Revolutions. Significance of Strong Industrial Base: 1) Large scale employment and labour intensive industries eg: growth job elasticity of GDP is low at 0.1 2) Invocsr is multiplier of capital and export possibilities eg: current multiplier is 2.5 3) Virtuous cycle of industries → Industrial growth → Higher demand → Higher income → Job Creation → GDP growth The industrial sector needs to be revived and kickstarted through others like Make in India, Make for World for Atmanirbhar Bharat.

— ADITYA TALWAR · AIR 270