Abstract India’s vision of becoming a developed economy by 2047 places emphasis on the quality of long-run economic growth rather than short-term expansion alone. In this context, structural transformation and productivity growth are central to understanding India’s development trajectory. This paper examines India’s growth experience through the lens of sectoral transformation, focusing on shifts in output and employment across agriculture, industry, and services, and the associated dynamics of productivity. The study argues that although India has achieved sustained aggregate growth, its pattern of structural transformation has been uneven. Unlike the classical development path observed in many industrialized economies, India’s transition has been characterized by a relatively weak movement of labor into manufacturing and a growing reliance on the services sector. While services-led growth has contributed to output expansion, it has also raised concerns regarding employment generation, productivity dispersion, and inequality. A significant proportion of the workforce continues to remain engaged in low-productivity activities, limiting the inclusiveness and sustainability of growth. Using a conceptual analytical framework grounded in development and growth theory, the paper highlights the importance of productivity enhancement both within and across sectors. It emphasizes the role of manufacturing as a potential driver of employment-intensive growth, while also recognizing the emerging contribution of knowledge-intensive services and digital technologies. The analysis further underscores the significance of human capital formation, technological adoption, and institutional support in accelerating productivity-led development. The paper concludes that achieving the goal of Viksit Bharat 2047 requires a strategic focus on productivity-centered and employment-generating growth. Strengthening structural transformation through coherent economic policies is essential for ensuring long-term, inclusive, and sustainable development in India.
Shende et al. (Wed,) studied this question.