While Services sector leads India’s GDP contribution, why is Industry sector lagging?

##As a country do we always take the easier route?

Services sector’s contribution to the GDP of our country in 2014-15 was a whopping 57.9%. Services sector accounts for 52.97% of total India’s Gross Value Added (GVA) of 115.50 lakh crore Indian rupees. To give a perspective, with GVA of Rs. 34.67 lakh crore, Industry sector contributes 30.02% and Agriculture and allied sector shares 17.01% with GVA around of 19.65 lakh crore INR. In terms of GDP contribution, Industry sectors scores 24.2% while Agriculture sector stands at 17.9%.

No doubt, our economy relies heavily on the Services sector which pretty much constitutes the country’s export, mostly software. With that kind of growth and contribution coming from the Services sector and a genuine lack of startup infrastructure, companies do find it easier to ride on the Services bandwagon.

####So where do we stand in terms of Products & Manufacturing?

Making products is cost-intensive, labor-intensive and is mostly considered as a manufacturing business generating lower margins. But one needs to understand that Making Products doesn’t mean just Manufacturing. While manufacturing is the base that builds the product, creating a global Indian product brand is the need of the hour.
Product centric startups require totally different mindset and approach. They tend to take tens to hundreds of millions of dollars and five to ten years before reaching profitability. This is quite a contrast from “services” model that doesn’t require lot of capital and usually have small but quick returns. But, product companies create lot more value and wealth. India must create Apple, Google, Amazon, Intel, Oracle, Lenovo, Xiaomi, Alibaba, and Facebooks of the world.