The link given below provides information about India's GDP and its composition.
http://www.mospi.nic.in/sdrsum0.htm
We need to appreciate the fact that the changing composition of India's GDP can have a lot of implications for our economy. The share of agriculture is around 16%, while the majority comes from services and manufacturing (the third largest contributor). The data in the tables will give you GDP numbers in absolute terms as well as percentage. The focus is more on GDP at current and constant prices.
Though the share of agriculture is declining, but the population employed in agriculture is still around 50%. There have been some significant changes in the past s.a. increase in per capita income, changes in demand patterns etc. (not considering the recessionary time period) due to the development of manufacturing and services sectors. What does it indicate to a businessman exploring opportunities in Indian economy? What do the future managers and entrepreneurs (i.e. you all) think about it?
More to come on this topic.....
You are welcome to share your observations, suggestions, analysis or opinion....... :)
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well,i agree with u kirti.
ReplyDeleteas far as i have read,the contribution of the services sector to the gdp in India,resembles that of a developed nation. the declining share of agriculture is also another positive,however the share is still huge and needs to be reduced in comparison to developed nations.the population engaged in agriculture is about 50%, and is a matter of concern.
i think the services sector is already growing at a high rate and i feel skeptic about its sustainability and i think that its the industrial sector now that needs attention. growth in this sector needs to be high and offers opportunites too,since India still lags behind on this front.also it can provide more employment opportunities to the people engaged in agriculture,since it is already employing more than required.
Dear Neha,
ReplyDeleteYou are absolutely right. Also, we need to reduce our import dependence for which we need to develop industrial sector. There is alot of potential in this sector and we have to convert it to be a strength of the economy. At the same time agriculture cannot be totally neglected as it is still the mainstay of the economy. What is required is to increase productivity in this sector. I completely agree that we cannot rely on services as this sector is currently highly dependent on external environment which is volatile (we just saw an example in the shape of sub-prime crisis).