India Fact of the Day
By Arnold Kling
From an article by Radha Chaurushiya in the Milken Institute Review.
The information technology sector employs only one million people – a quarter of a percent of a labor force of more than 400 million. Output in the services sector as a whole has been growing by more than 8 percent per year since 1994, and represents more than half of India’s GDP. But this sector employs less than a quarter of the workforce.
The majority of Indians are still in its relatively backward agriculture sector.
The article paints a sobering picture. India’s lack of infrastructure discourages manufacturing. How will unskilled and low-skilled labor share in economic growth?