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Does Structural Change Occur in Manufacturing Sectors? Cross-country Evidence with Special Reference to India

Vol 8 , Issue 2 , July - December 2021 | Pages: 01-29 | Research Paper  

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Author Details ( * ) denotes Corresponding author

1. * Sarbapriya Ray, Associate Professor, Department of Commerce, Vivekananda College, Howrah, West Bengal, India (
2. Abhijeet Bag, Research Scholar & Assistant Professor, Department of Commerce, Coochbehar Panchanan Barma University, Coochbehar, West Bengal, India (

The article aims to investigate the nature of structural changes of manufacturing sectors of selected countries including India. It tries to find out whether there is continuing shift of the sources of economic growth from the manufacturing sector to the services sector. The result suggests that the moving force of economic growth has reallocated unquestionably from the manufacturing sector to service sector in all countries but at different pace. Specifically, we interpret that Indian manufacturing pulls along services. A turn-down or boost- up in the growth rate of manufacturing sector will pessimistically or optimistically have an effect on the growth rate of the services sector in the long-run. From our interpretation of all countries surveyed, it has been observed that the manufacturing sector remains essential for both developing as well as developed economies along with services sector. Nevertheless, manufacturing plays a crucial role in developing economies whereas services is much more vital in developed economies.


Manufacturing sector; Services sector; Industry structure; India.

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