Wednesday, April 18, 2012

India's most important structural imbalance in a graphic

A report by Deloitte has this graphic which captures the essence of India's most worrying economic-demographic imbalance.

An oversized 58% of the workforce involved in agriculture contributes just 15% to the GDP. India's biggest challenge in the coming years will be to manage the transition of a large share of this 58% into manufacturing and services. Given the already large share of services sector, manufacturing may have to absorb the major share of those moving out of agriculture.

1 comment:

Frank Muraca said...

I did a brief post about urbanization in India:

The government has to start thinking about policies that will spur urbanization without causing agglomerated poverty. China and India are in similar positions - except China is actually doing something about it.