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Economic Growth and Challenge: India

India's global role and economic growth

  • 3 things to know
  • A2 Unit 4

Overview

Why India became a centre for outsourced services, two types of service commonly outsourced to India and global shift.

What you need to know

Answer each one before you reveal it.

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Key term

Describe the change in the structure of India's economy since 1991.

Key term

Why is India described as a service-led economy?

Key term

Define outsourcing.

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Describe the change in the structure of India's economy since 1991.

    Model answer

    Liberalisation opened it to trade and foreign investment, and services have grown to dominate output while agriculture's share has fallen sharply.

  2. 2

    Why is India described as a service-led economy?

    Model answer

    Services contribute the largest share of its output, unusually for a country at its income level, having grown faster than manufacturing.

  3. 3

    Define outsourcing.

    Model answer

    Outsourcing is the contracting out of a business function to another company, which may be in a different country.

  4. 4

    Define offshoring.

    Model answer

    Offshoring is moving a business function to another country, whether it remains in-house or is contracted out.

  5. 5

    Explain why India became a centre for outsourced services.

    Model answer

    A large English-speaking graduate workforce, much lower wage costs, and a time zone allowing overnight work for European and American clients.

  6. 6

    Name two types of service commonly outsourced to India.

    Model answer

    Call centres and customer support, and software development and IT support, with accounting and medical records processing also common.

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