Examining the link between structural change and growth in India, this study constructs indices of structural change, and performs a panel data analysis using data for India's 16 major states. It finds that there is a one-way positive effect of structural change on growth during the 2000-06 period. This finding emerges when one allows the disturbances to be heteroscedastic, contemporaneously cross-sectionally correlated, and autocorrelated. The results are mostly reinforced when the sample is divided into richer and poorer states.