Question

China’s growth is mainly contributed by the manufacturing sector and India’s growth by the service sector,prepare a chart showing the relevance of this statement with respect to the structural changes in the last decade in the respective countries.

Answer 1

Aspect	China	India
Main contributor to growth	Manufacturing sector	Service sector
Agriculture	Its share in GDP and employment has declined	Its share in GDP has declined, but it still employs a large population
Manufacturing	Strong and highly developed; major contributor to exports and employment	Growing, but its contribution is lower than China’s
Services	Service sector has also expanded rapidly	Major contributor to GDP growth
Exports	Dominated by manufactured goods such as machinery, electronics and other industrial products	Strong in services such as IT, software and business services, along with manufactured exports
Employment pattern	Workers have shifted considerably from agriculture to manufacturing and services	Workers are shifting from agriculture mainly towards services and construction; manufacturing has absorbed comparatively fewer workers
Structural change	Agriculture → Manufacturing → Services	Agriculture → Services, with relatively slower manufacturing growth

China’s economic growth has been strongly supported by manufacturing and exports, whereas India’s growth has been led mainly by the service sector. Thus, China’s structural transformation has been more manufacturing-oriented, while India has moved more directly from agriculture to services.