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Thatmoonemojiguy

A guy with a lot of ... • 1d

Manufacturing growth in india !!

Havish Gupta

Figuring Out • 1d

It's only the Manufacturing Sector that creates job and we are experiencing negative growth in it! Wow. Wait, i actually researched a bit and found out that the situation is same in other countries (including China!). And that's not because The Man

Anirudh Gupta

CA Aspirant|Content ... • 1d

Maybe there is more value for service industries?? correct me if I'm wrong

1 replies1 like

Replies (1)

Havish Gupta

Figuring Out • 1d

I actually confirmed it and actually the gdp per sector is calculated based on the net value added. I'll try to explain that with a simple example. Farmer used ₹20 seeds to produce a ₹200 Coffee: This adds 180 in Agriculture Gdp A manufacturing company used those ₹200 coffee to produce coffer powder worth ₹500: This adds ₹300 in Manufacturing gdp. And finnally Amazon sold that coffe for ₹1000. this adds a ₹500 in service gdp So this is an over simplified example of how gdp works and based on this, what i can understand is that service sector companies sell their final product (or service) at high margins and thus there's a more Higher increase in service sector's share than manufacturing one. so you're right.

1 replies1 like

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