Introduction:
What China is to the world for manufacturing, India is for services. The accelerated economic growth of both India and China in recent years has been a focus of significant policy discussion and analysis. On one hand, this growth is led by the IT industry in India, and on the other, it is the manufacturing industry based in China. This article details how we have come to this conclusion following 2 years of extensive research by the experts of Vantage Agora Inc.,
A comparison of the economic structure in China and India demonstrates that the role of the service sector (or the tertiary sector as it is known in China) in the two economies is very different. Referring to Figure 1,on the one hand, the service sector has become the dominant contributor to the Indian economy, accounting for 54.2 per cent of GDP (Gross Domestic Product) in 2004.The success in this sector is regarded as “India’s services revolution” (Gordon and Gupta 2004). On the other hand, China’s service sector has lagged well behind the manufacturing sector (or the secondary sector according to Chinese terminology), and its role in the economy improved slightly in the last fifteen years when the Chinese economy achieved its best performance in recent history.
Figure1: Comparison of Various Indian & Chinese Industry Sectors through the decades. (Sources: National Bureau of Statistics (various issues) and Reserve Bank of India (2005). Chinese data from 1993 onwards are revised according to China’s recently released economic survey results (www.stats.gov.cn, Zhu 2005)
The Indian Services Sector
The service sector is playing an increasingly important role in the Indian economy. Services, which made up only 29% of GDP in 1951-52, grew to 57% of GDP by 2009-10. A variety of factors...Read more
About the Author
As the founder of Vantage Agora (VA), Harsha has been instrumental in the growth of the company since its inception. Harsha has over 20+ years of experience in consulting, Enterprise Social Networking, Business Intelligence, and Process improvement. His work with companies such as Fidelity, American Airlines, I2 Technologies, etc, has made him an Expert in Business intelligence and Process improvement.
Harsha has developed a patent pending 'Enterprise Social Network – VA Club', Harsha also has 4 process improvement patents.
Harsha graduated MBA from southern Methodist University (SMU) Dallas, a masters in Computer Science from Louisiana State University (LSU) Baton Rouge, and a Bachelors in Engineering from Bangalore University (BU).
About Vantage Agora
Vantage Agora (VA) is a global provider of back-office solutions, custom IT services and consulting services for companies in the insurance, finance, and healthcare sectors. As a SSAE 16 Type II audited company, Vantage Agora utilizes advanced data processing and quality control systems on a secured network to ensure efficient, comprehensive management of back-office functions such as insurance, accounting, financial and administrative tasks. Founded in 2004, Vantage Agora has offices in Cleveland and Dallas.
Know more about Harsha and Vantage Agora.
