| Poverty is a global problem which impedes the development of all countries. In21st century, the world economic has developed rapidly, but poverty is also the mostserious challenge to the world. No matter in the highly developed countries, or in thedeveloping countries, there exist poverty in different levels. Poverty limits thedevelopment of human society. India is one of the countries which have the mostpoverty population in the world. To eliminate poverty is not only benefit for the rapidgrowth of the India economy, but also has great significance to the poverty reductionin the world. Since the1990s, India’s service industry made the great contributions toeconomic development. At the same time, India’s poverty rate fell rapidly. Service hasbecome the main driver of its economic development. The development model ofIndia is different from other countries of world. It developed from a agriculturalcountry across the stage of industrialization, directly into the era of service economy.Now, it has become one of the world’s leading service center. The experience ofIndian indicates the world: Industrialization is not the only way to develop economy.It is possible to promote economic growth and reduce poverty ratio through thedevelopment of service industry. Service can become the impetus of povertyreduction.Throughout the current academic research achievements, there is little literaturesresearch the relationship of India service and poverty reduction. Therefore, this articleattempts to research how service reduce poverty in India. Firstly, the papersummarized the literatures which about the relationship between service and povertyreduction. Service mainly through three ways to reduce poverty: increase revenue;create jobs; provide essential services. The second part explains the relevant theoriesabout service and poverty. These theories are mainly about service and economicdevelopment, service and employment and anti-poverty. The third part describes thesemechanisms in details. In forth part, the author established an econometric model toanalysis the role of different industries on poverty reduction. Analysis result showsthat only the development of service industry plays an active role in poverty reductionin three industries in India. Last, the author put forward some suggestions across theseproblems which appear in the process of poverty reduction.The innovation of this paper has three aspects: First, the angle of selected topic. Second, this paper sums up the mechanism of how service industry development toreduce poverty. Third, this paper puts forward some problems and suggestions on therole of service industry on the poverty reduction in India. |
