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INDIA’s industrial archipelago : Uneven manufacturing growth in a services-led economy

By: Shekhar, Meenakshi and Halder, Twincle.
Material type: materialTypeLabelBookPublisher: Economic & Political Weekly Description: 61(16), Apr 18, 2026: p.74-79. In: Economic & Political WeeklySummary: India’s economic structure reflects a persistent paradox: 46% of the workforce remains engaged in agriculture, which contributes about 9% to gross value added, while services account for around 55% of output, with less than 30% of the workforce. This asymmetry points to deeper structural imbalances in the process of transformation. The pattern is further marked by significant interstate variation, where some states have experienced relatively stronger industrial growth supported by policy interventions, while others exhibit tendencies of premature deindustrialisation. From the development of planned industrial estates in Uttarakhand to the persistence of a services-led structure in the north-eastern states, India’s structural transformation has diverged from conventional trajectories. This pattern underscores the centrality of policy in shaping sectoral outcomes, rather than geography alone.-Reproduced https://www.epw.in/journal/indias-industrial-transformation/indias-industrial-archipelago.html
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Articles Articles Indian Institute of Public Administration
61(16), Apr 18, 2026: p.74-79 Available AR138772

India’s economic structure reflects a persistent paradox: 46% of the workforce remains engaged in agriculture, which contributes about 9% to gross value added, while services account for around 55% of output, with less than 30% of the workforce. This asymmetry points to deeper structural imbalances in the process of transformation. The pattern is further marked by significant interstate variation, where some states have experienced relatively stronger industrial growth supported by policy interventions, while others exhibit tendencies of premature deindustrialisation. From the development of planned industrial estates in Uttarakhand to the persistence of a services-led structure in the north-eastern states, India’s structural transformation has diverged from conventional trajectories. This pattern underscores the centrality of policy in shaping sectoral outcomes, rather than geography alone.-Reproduced

https://www.epw.in/journal/indias-industrial-transformation/indias-industrial-archipelago.html

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