Introduction

Urban areas have started to command greater attention in the national policy imagination over the past two decades, particularly due to the growth of the urban economy which now comprises more than half of the national economic output. However, output growth in urban areas has not been accompanied by the creation of enough jobs for India’s large, unskilled workforce. Programmes such as Skill India and Make in India have been formulated in response to the overwhelming need for employment generation in the manufacturing and services sectors in Indian cities.
This chapter depicts the structural transformation of the Indian economy by looking at changes in the sectoral composition at national levels, and for cities. The absence of data at the city-level for economic variables such as output and employment continue to be a barrier for granular economic analysis of city economies. This section focusses on the national and state levels and attempts to highlight sectoral shifts in both output and employment.

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