Analysis of 8 Sectors of

Indian Economy
Macro Economics- Dr. Soma Dey
Abhishek Barua
Roll: 102

th

29 Nov 2016

For the analysis of the output of past 20 year data, I have taken the below mentioned 8 sectors:
1.
2.
3.
4.
5.
6.
7.
8.

Agriculture
Mining & Quarrying
Manufacturing
Electricity, Gas & Water Supply
Construction
Transport, Storage & Communication
Railways
Communication

1600000

All data in Cr. Rupees

1400000

Agriculture

1200000

Mining & Quarrying

1000000

Manufacturing

800000

Electricity, Gas & Water

Supply

600000

Construction

400000

Transport, Storage &

Communication

200000

Railways
Communication
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13

Reason for taking agriculture for analysis is because India is primarily an agriculture driven economy
with more than 67% engaged directly or indirectly in agriculture sector. From the data of output
from 1993-94 till 2012-13, the growth was constant and at a lower rate 2002-03 and output
increased at a higher rate thereon. Reason for the same might be the 2004 general elections which
brought UPA to power. UPA government with its inclusive policies had helped the farmer achieve
remarkable success.
Similarly Mining & Quarrying, Electricity Gas & Water Supply and Communication sectors saw a
dismal growth and a little surge in output after 2003-04, this is because up until that time these
sectors were under the central government and was considered as essential sectors. But after 2004,
India saw decentralization of these sectors. Advent of Public Sector Undertaking and Private
Companies in the same sector ensured higher productivity and better efficiency.
Another sector which saw immense growth is manufacturing sector. Since 1991, when India
witnessed Liberalization, Privatization and globalization; manufacturing sector has seen most of the

growth. But special mention has to be made again of the year 2003-04 where the growth of output
from manufacturing sector saw a rapid jump.
Transportation and construction sectors also saw significant growth in lieu of improvement in
infrastructure and government understanding the need of better connectivity and better
infrastructure as a means to higher growth of the economy and attract foreign direct investments in
India. This will not only bring MNCs in India, but will ensure more foreign reserves and technology.
Railway, which is said to be the lifeline of the economy, has performed dismally during this 20 year
period. This is because Railway was never seen as an important ministry in any governmental
regime. It was used as a plump seat gifted to alliance parties of elected government. Whether it be
Ram Vilas Paswan of then Janta Dal or Mamata Banerjee from TMC during UPA regime. Railway was
used as a tool for vote bank by the ministers from allied parties and cared less for the growth of the
railway and importance it can play in steering the growth of the country.

From 2011-13 we can see the output of these sectors becoming flat and low or no growth, this might
be due to the policy paralysis that hit then UPA government which hindered the government from
bringing any proactive decisions to carry the growth of the economy forward.