Question 1: Normally countries shifted from agriculture to industry and later to services, but India shifted directly from agriculture to services.What are the reason for the huge growth of the services vis-a-vis industry in the country? can India become a developed country without a strong industrial base?

Answer: Part-I

The proper course of development that an economy follow is a shift from agriculture to services via industry, but India has shifted from agriculture to services directly without entering into industrial phase. The Reason behind its direct shift are as follows:

1. Globalisation and Liberalisation: Both the term influenced India almost at the same time, which created a base to grow service sector. The globalization opened the shifting of service sector job while liberalization opened the country’s market by increased investment.
2. Availability of Skilled manpower : The huge availability of skilled manpower with lower labor cost provided a solid base for service sector growth.
3. Internal and external demand: The world wide demand of services sector with increasing economy and purchase power has influenced greatly in growth of service sector.

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