The service sector can grow alongside industrial development
Let us take any car sold in India. The value addition comes at a huge price. The so-called discounts are given rarely, but after a big price rice. We need to understand that for every single car sold, there are hundreds of thousands of jobs created in the auto ancillaries and the service sector.Who buys the cars anyway? It is only the very rich and the upper middle class. So, the car industry should be encouraged. Similarly, we are all used to spending more for the same quantity of spices and all branded goods like toothpastes.
Nothing comes cheap. However, the middle class also contributes to the economy, as the smaller kirana shops, for example, stock smaller packs that sell very well. The activity goes on and on.
We should understand however, that the service sector can grow only if people have purchasing power. Reason why KFC cannot come to the tier-2 towns and cities. The smaller players who offer substitutes do come and make merry.
Hence, we need industrial development, but this should be more balanced and not the brutal industrial development that destroys forests, for example.