Structural Changes in Rural Structural Changes in Rural Service sectorService sector

2014

What is Structural change ?

Now & Then

1950-511950-51 2012-132012-13GDP Contribution GDP Contribution

Agriculture 52% 16%

Industry 26% 28%

Service 22% 56%

Source: Binswanger-Mkhize and d’ Souza (2011a).

Service Sector in Rural IndiaUnique characteristics of India’s service sector

growth. Entire decline in the share of agriculture sector in GDP,

i.e., from 32 % in 1990 to 22 % in 2003Manufacturing sector’s share has remained more or less

the same. In general, such a trend is mainly experienced by

high-income countries and not by developing countries.

In spite of the rising share of services in GDP and trade, there has not been a corresponding rise in the share of services in total employment.

Growth pattern in the service sector has not been uniform across all services in India.

Some services have grown fast in terms of their share in GDP and also in terms of their share in trade and FDI (e.g., software and telecom services).

Some services, which have grown fast but have not been able to improve their share in international transactions (e.g., health and education)

Some services that have in fact witnessed a negative growth and also a low share in international transactions (e.g., legal services).

Rural Services

Growth of Education centers

Growth in Transportation service

Growth in Healthcare serviceCampaigns for Healthcare in Jharkhand helped in Understanding the present scenario of health facilities.

Identify major issues that people are facing while seeking health services.

Review the state of PHC infrastructure and its connectivity to nearby villages.

Build awareness about accountability in health care

Growth in Financial serviceNationalized banks (SBI, Canara)Private Banks (ICICI, HSBC)Credit societies (Micro finance institutions)Co-Operative banks (State Cooperative Banks)Informal loans (money lenders)Deployment of ATMs in Rural Areas leading to

growth in Indian ATM industry: Ken Research

Growth in Communication & IT service

Growth in Agricultural related services

Growth in Infrastructure developments