- Employment: Services sector employs skilled labor, leaving large unskilled population unemployed/underemployed.
- Productivity: Moving farmers directly to service jobs en masse has not led to high income levels in other countries.
- Imitation: Manufacturing technologies are easier to imitate than service productivity (organizational models, human capital).
- Global Trends: Manufacturing is shrinking globally, making it harder to catch up.
- Competition: India faces competition from China in manufacturing exports.
- Income Disparity: Can exacerbate income inequality if benefits are not broad-based.