Published on January 24, 2025 – Updated on January 24, 2025

An insightful column by Rabah Arezki and Partha Sen on Project Syndicate


Rabah Arezki
CNRS, CERDI
Google Scholar Profile

Solving India’s Industrialization Puzzle

As China’s labor costs have increased, many analysts anticipated a massive expansion in India’s industrial base. So, why, despite its vast supply of labor, has India failed to attract international investors seeking a lower-wage manufacturing workforce?

At first glance, the Indian economy appears to be thriving. Since 2000, annual GDP growth has averaged 6%, largely fueled by the service sector. High-value-added services, in particular, have emerged as major drivers of exports and GDP growth.

Read more on Project Syndicate