Opinion | India and the promise of service revolution4 min read 13 Nov 2018, 09:03 PM IST
India’s demographics will become the new growth driver if investments in human capital stock is scaled up
India faces the Fourth Industrial Revolution that will impact entrepreneurs, consumers, young and old alike. The First Industrial Revolution used steam power to mechanize production, the second used electric power to create mass production, the third used electronics to automate production, and the fourth is building on the digital revolution. Five decades of rising capabilities and falling costs in digital communication have resulted in global service revolution. It is reshaping existing industries, transforming labour markets, and changing the way we relate to one another. The services sector now dominates the manufacturing sector, and account for more than 70% of gross domestic product (GDP) in developed economies. Services also contribute to the bulk of GDP in developing countries. Young workers who leave the farm for the cities are increasingly absorbed into urban services jobs instead of manufacturing.