Broadberry, Stephen and Gupta, Bishnupriya. (2010) The historical roots of India’s service-led development: a sectoral analysis of Anglo-Indian productivity differences, 1870–2000. Explorations in Economic History, Vol.47 (No.3). pp. 264-278. ISSN 0014-4983

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Abstract

India fell further behind the UK in terms of GDP per capita and overall labour productivity between the 1870s and the 1970s, but has been catching-up since. This paper offers a sectoral analysis of these trends. Comparative India/UK labour productivity in agriculture has declined continuously, and agriculture still accounts for around two-thirds of employment in India. Agriculture thus played a key role in India’s falling behind and has subsequently slowed down the process of catching up. Although there have been substantial fluctuations in comparative India/UK labour productivity in industry, this sector has exhibited no long run trend. The only sector to exhibit an upward trend in comparative India/UK labour productivity is services. India’s recent emergence as a dynamic service-led economy thus appears to have long historical roots. Although India has been characterised by relatively low levels of physical and human capital formation overall, its education provision has historically been unusually skewed towards secondary and tertiary levels. This has provided a limited supply of high productivity workers who have been employed predominantly in services.

Item Type:	Journal Article
Subjects:	H Social Sciences > HC Economic History and Conditions D History General and Old World > DS Asia
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Labor productivity -- India -- History, Labor productivity -- Great Britain -- History, Labor productivity -- Effect of education on -- India, Agricultural productivity -- India, India -- Economic conditions
Journal or Publication Title:	Explorations in Economic History
Publisher:	Elsevier
ISSN:	0014-4983
Date:	July 2010
Volume:	Vol.47
Number:	No.3
Page Range:	pp. 264-278
Identification Number:	10.1016/j.eeh.2009.09.004
Status:	Peer Reviewed
Access rights to Published version:	Restricted or Subscription Access
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URI:	http://wrap.warwick.ac.uk/id/eprint/3322

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