IMF says moving jobs away from manufacturing can boost growth

Make in India is primarily a manufacturing initiative, for both domestic and export markets

In what could be a lesson for Prime Minister Narendra Modi’s flagship Make in India, the International Monetary Fund (IMF) on Monday said shifting of jobs from manufacturing to services would not affect growth adversely.

In its analytical chapter on World Economic Outlook, the IMF said such a shift should not hinder productivity growth. Instead, it would boost the prospect of developing economies to gain ground. 

In a chapter, released ahead of the annual meeting with World Bank meeting next week, the IMF said some service industries have higher productivity levels and growth rates than manufacturing. 

“Since the early 2000s, the rise in