THE CHANGING ECONOMIC SCENARIO: A STUDY OF MANUFACTURING AND SERVICE SECTOR

Abstract

The present paper is an attempt to study multiple economic variables and their relationship with the economic growth of a nation. The study mainly resolves around a comparative analysis between manufacturing and service sectors as major contributors to the economic development. It’s largely believed by policy makers that an economic model oriented towards producers’ goods now and consumer goods later would support a long-term well-being of both the sectors, thereby helping economy grow at a fast pace. However, this mechanism emphasizing capital goods production has yet to be implemented in Indian context. Nonetheless the country is doing considerably well in services, while manufacturing sector push is need of the hour. The study also tests role played by small industries in overall well-being of the country and the status of policy reforms in manufacturing sector.