1、Indias Industrial QuestShifting Away from Services-led Path Dependency to Path PlasticityAradhna AggarwalSenior Advisor to the National Council of Applied Economic Research,IndiaAuthorAcknowledgement:The author would like to thank Dr.Chen Xiao from the Center for International Knowledge on Developme
2、nt(CIKD)for her valuable comments and support in revising the report.Please cite the report as follows:Aggarwal,Aradhna.2025.“Indias Industrial Quest.”Beijing:Global South Research Center.The views expressed in the report are the authors own and do not necessarily reflect the position of GSRC.Indias
3、 emergence as one of the worlds fastest-growing major economies is marked by a growth trajectory differing from the traditional path of structural transformation.It has bypassed a significant phase of industrialization and leapfrogged directly from agriculture to services driven by information and c
4、ommunication technology(ICT).Since 1990,its economic growth has been predominantly services-led.The services-led growth path in India has primarily been shaped by three factors.Institutionally,a risk-averse mindset,regulatory inefficiencies,and a cautious stance toward free trade have constrained in
5、dustrialization,whereas the service sector has advanced due to its limited reliance on legacy institutions.Technologically,insufficient R&D investment,a shortage of skilled workers,and dependence on external sources for complex technologies have held back manufacturing.The higher wages in the inform
6、ation technology(IT)sector continue to attract the workforce.In terms of intersectoral linkages,a cumulative cycle of development centered on manufacturing has yet to take shape,and globalization has further weakened the connections among the three sectors of agriculture,industry and services.Amid i