India’s structural transformation directly from agriculture to the services sector without going through the intermediate step of agriculture to manufacturing to services has opened up policy challenges. While manufacturing can potentially create low-skilled labour-intensive jobs, it is the services sector that has proved to be the most dynamic.  The debate between manufacturing and services has been going for long in India. We illustrate here that both manufacturing and services are inter-dependent on each other.  The auto sector, one of the largest sub-sectors in the manufacturing sector is a case in point.

Senior Advisers: Shashanka Bhide and Sanjib Pohit