Uploaded November 2025 | Updated September 2026, 2 weeks ago

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Learn here the concept of LEWISIAN TRANSFORMATION AND CONTEXT OF INDIAN ECONOMY
👉 Concept : Arthur Lewis (1954) proposed that economic development occurs when surplus labor moves from the subsistence sector (agriculture) to the modern sector (manufacturing).
👉 India's Context: India deviated from this model (unlike China).
The Gap: While agriculture's employment share dropped (64% to ~46%), labor shifted to construction and low-value services, not manufacturing (stagnant at ~12%).
👉 Result: Led to "Jobless Growth" and missed industrialization opportunities.
NITI Aayog proposes a "Farm-as-Factory" model (agri-processing) to create local jobs, acknowledging the manufacturing skip.


youtu.be/02nEFXvZdjs


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