Structural Transformation of the Indian Economy

This theme critically engages with the processes and patterns of structural transformation in India, with a focus on the reallocation of labour and capital across sectors. It interrogates the distinctive features of India’s development trajectory, including the limited expansion of manufacturing, the prominence of services-led growth, and the persistence of informality. The research explores how these dynamics intersect with questions of productivity, employment quality, and regional inequality, while also examining the roles of state policy, global integration, and technological change.

Understanding these dynamics requires attention to both long-term trends and sector-specific shifts within the Indian economy. Why has manufacturing not absorbed labour at the scale observed in other late-industrialising contexts? How can the coexistence of high-growth sectors and widespread low-productivity employment be explained? Regional disparities further complicate this picture, shaping both the pace and nature of transformation. To address such questions, the research relies on detailed empirical analysis of large-scale nationally representative data sources, tracking changes in sectoral composition, employment, productivity, and wages over time while informing broader debates on development strategy.

Faculty involved: Angarika Rakshit