India's Comparative Advantage in Services and Shift towards Manufacturing

India's modern services sector, including IT services exports, has experienced rapid growth, offering a range of professional services beyond just call centers. Multinational companies have established their global capability centers in India, contributing to increased revenue. A notable trend is the movement from services to manufacturing, with MNCs setting up manufacturing plants in sectors like medical equipment and high-precision manufacturing. Even domestic startups are transitioning from services to manufacturing. The challenge lies in ensuring inclusive growth and providing employment opportunities for the majority of India's population.