Introduction
Structural change in an economy refers to the shift of resources and workforce from low-productivity sectors to high-productivity sectors. In India, this transformation is often described as a case of the missing middle, where the economy has moved from agriculture to services without a strong manufacturing base.
Body
The missing middle indicates weak growth of the manufacturing sector, which traditionally absorbs surplus labour from agriculture. As a result, a large workforce has shifted directly into low-skilled services, limiting gains in productivity and employment quality. This pattern has constrained mass job creation and widened income inequality.
While the services-led growth has contributed to GDP expansion and global integration, it alone may not be sufficient for India to become a developed economy. Manufacturing plays a critical role in technology diffusion, export competitiveness and creation of stable jobs. Without strengthening this sector, India risks premature deindustrialization.
However, if supported by industrial policy, skill development, improved infrastructure and ease of doing business, correcting the missing middle can accelerate inclusive growth.
Conclusion
In conclusion, the current structural change marked by the missing middle is insufficient for achieving developed economy status. A balanced growth strategy that revives manufacturing alongside services is essential for sustainable and inclusive development.