Precocious growth in India's skill-intensive sectors worrying: Paul Krugman

Krugman said skill intensive industries generate a lot of GDP and exports but they do not generate a lot of jobs

India's economic development which saw early progress of skill intensive industries and services worries Nobel laureate Paul Krugman.

"One thing that does worry me about India's economic profile is its path. There's this precocious development of skill intensive industries, skill intensive services in particular," Krugman said.

He was responding to a query -- Will high and capital technology actually increase the costs for industry and increased poverty and unemployment in countries such as India and Bangladesh?-- posed by former chief economic advisor Arvind Subramanian.

Krugman said skill intensive industries generate a lot of gross domestic product (GDP) and exports but