Growth and poverty in India: emerging dimensions of the tertiary sector

Arup Mitra and Juan Pedro Schmid

The Service Industries Journal, 2008, vol. 28, issue 8, 1055-1076

Abstract: The economic reforms of the 1990s have accelerated the tertiarisation of the Indian economy. New activities both in the manufacturing and tertiary sectors have emerged and also seem to have generated employment opportunities that did not exist earlier. Though many such opportunities are available only to the highly skilled and/or educated workforce, the indirect effects are of considerable significance in that they manifest the percolation effects of growth. In this context, the present study aims at examining the nature and composition of the tertiary sector's growth across the major states in India and relates such growth patterns to changes in poverty. On the whole, results are indicative that a large tertiary sector is not as superfluous as is often said to be. It has the potential to enhance economic growth and therefore contribute to poverty reduction.

Date: 2008
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DOI: 10.1080/02642060802187843

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