GROWTH PERFORMANCE AND STRUCTURAL CHANGE OF INDIAN ECONOMY

Description

Though the Indian economy has successfully achieved the third phase of structural change theory globally, it lagged behind China, Indonesia and Pakistan. However, within the Indian economy, the pattern of the economic structure had undergone systematic changes in the long run, while in the short run, both the output and employment has been varied unsystematically with different policy regimes. The services sectors have dominated and replaced the industrial sector in both the growth rates and economic structure after the 1990s reforms, but it has failed to contribute to labour transformation. The recent transformation phase of economic structure and employment was quite unstable as both the variables moved in the opposite direction and failed in Kuznets opinion. The structural change in India is bound to the sectoral shift of output level only, while the employment has declined in absolute terms. This led to the implications of the policy regimes being restrained to the ‘one-sector growth model’. Here, the notion of ‘jobless’ growth in the recent transformations has turned to ‘job-loss’ growth.