Read the passages below to answer the questions that follow each passage.
The latest CSO data on economic growth in the States has thrown up a number of interesting trends, none perhaps more interesting than the catch-up trend shown by what were conventionally viewed as backward States-Bihar's 11% growth has already received much attention. A disaggregated look at the growth figures reveals an even more interesting fact-the huge role played by services in propelling growth in backward States. Bihar's 11% average growth figure between FY05 and FY09 (up from 6% between FY01 and FY05) hidest the massive 38.13% growth in construction (up from 14% between. FY01 and FY05), 17.34% growth in communication (up from 10% between FY01 and FY05), 17.33% in restaurants and hotels (up from 13% between FY01 and FY 05) all major services sectors, in the same period. The boom in construction, telephones (particularly mobiles) and hospitality in mirrored in other previously slow growing states, including Jharkhand, Madhya Pradesh and Orissa. What is even more important than the growth numbers themselves is the large number of jobs (particularly low skill and semi-skilled) that have been generated in the services sector industry. At a time when inclusive growth is the focus of government policy, such employment generating growth must be satisfying.
Impressive though the numbers are, it is easy to get carried a way by them. The fact of the matter is that services can only create a certain number of jobs and certainly not enough over a sustained period of time to absorb the entire workforce. Construction, for example, may eventually be limited by weak demand. The growth in communications was very impressive in these last five years because of the mobile boom, but that might plateau. Significantly, the numbers on agriculture growth remain very low and a significant proportion of India s population still depends on agriculture. Not all the excess labour from agriculture-which needs to move out to lift productivity-will be absorbed by services. So, industry/ manufacturing will still be the key to ensuring the kind of inclusive growth we need to boost backward States and to lift people out of poverty. But manufacturing needs radical policy attention in a way that services do not, to register rapid growth. The government, at the Centre and in States, needs to focus on labour laws, land acquisition and infrastructure. The strong growth in services, while welcome, should not become a reason to do nothing about promoting manufacturing and reforming agriculture. Healthy growth in those two sectors is needed to generate the demand that will eventually sustain services on a high growth path.