Briefly discuss the industrial structure of India, China and Japan.
Or Explain the industrial growth of China. Or How structural transformation in India is different from that of China.
Ans. India: India has experienced much faster productivity growth in services than in industry while Indian agricultural growth has been modest. at best. And despite having a lower aggregate Productivity than China-and hence presumably being at an earlier 'stage' of development-the Indian economy in 2013 is indeed heavily dominated' by services (51.3), with industry's share still surprisingly small (30.7). Moreover, agriculture is still a substantial sector especially in terms of employment shares since agriculture still employs about 60 per cent of the workforce. The slow modernisation of the Indian economy can be seen, where all traditional industries show a downward trend in real value-added shares between 1970 and 2007, to the advantage of chemicals and non-metallic mineral products (until 2000), and basic metals. Also new industries, such as machinery, ICT and transport equipment, have emerged, but their real value-added shares remain fairly low relative to the rest of the world. China: Since 1949 when the People's Republic of China was established, and especially since 1978, China's transformation from a traditional agricultural society to a modern industrial society has been greatly accelerated by a rapid industrial restructuring. In 2013, industry was responsible for 43.9 per cent of China's GDP. Industry has also been the fastest growing sector in China in labour productivity terms, increasing by more than 500 per cent between 1980 and 2005, whilst services value added per worker increased by slightly more than 200 per cent, and agriculture slightly less than 200 per cent. Its industrial structure over this period is characterised by a strong decline of textile and other traditional industries and the 'heavy' industries producing metals and machinery, to the advantage of the electrical and telecommunication industry, transport equipment, food and beverages, apparel, leather and footwear. The Chinese industry has moved from the intermediate to the final stages of production processes, to better perform its role of global supplier of labour-intensive manufactured consumption goods. In the period 2000-2006, slightly different trends are observed, with a strong rise of the basic metal industry (possibly due also to the rise in its relative prices) and a partial recovery of the machinery sector, to the expense of traditional productions and chemicals. The share of the electrical and telecommunication industry continued to rise, reaching 16 per cent of total value added in 2006.
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