Indian Economy and various sectors

of the economy
Indian Economy
Economy till 2008 :
 Variation of GDP growth rate :
(1900 – 1950 ) = 0.9 %
(1950 – 1980 ) = 6 % (average growth rate)
(2000 – 2007) = 7.2 %
(2005 -2006) = 9.2 %
Over the year GDP growth rate has been
accelerating and population growth rate has
moderated so per capita income rises .
 Variation of inflation rates :
1950 - 1.7 %
1960 - 6.4 %
1980 - 8%
2001 to 2008 - 5 %

Economy after 2008

 Variation of growth rate :
(2007 – 2008) : 7.4 %
(2012 – 2013 )= 5%
  Variation of inflation:
(2008 to 2011) =11%
(2013 to 2014) = 7%
2015 = -0.7 %
 Inflation control in india has been aied by
sharp decine in global commodity prices
especially the crude oil.

 Presently, the Indian economy is the seventh

largest in the world by nominal GDP figures.
By purchasing power parity, it is the third
largest in the world.
Various sectors of the economy
Indian economy is classified in three main
sectors –
 Agriculture and allied activities
 Industry
 Services

Agriculture includes Agriculture (Agriculture

proper & Livestock), Forestry & Logging,
Fishing and related activities.

 Industry sector includes Manufacturing

(Registered & Unregistered), Electricity, Gas,
Water supply, and Construction.
  Services sector includes Trade, repairs,
hotels and restaurants, Transport, storage,
communication & services related to
broadcasting, Financial, real estate &
professional services, Community, social &
personal services.

AGRICULTURE
 It accounts for about 49% of the employment
in the country.
 the share of this sector in GDP has been
declining over the years.
 It provides raw material to industries .About
10% of India's exports consist of agricultural
commodities..
 Green Revolution involved bringing additional
area under cultivation, extension of irrigation
facilities, the use of improved high-yielding
variety of seeds, better techniques evolved
through agricultural research, water
management and plant protection through
judicious use of fertilizers, pesticides and
cropping practices.
 Issues that need to be addressed
heavy dependency on monsoons.
low level of public investment
 exhaustion of the yield potential of new
high yielding varieties wheat and rice,
unbalanced fertilizer use
 low seeds replacement rate
an inadequate incentive system and
post-harvest value addition
 High number of farmers' suicide is also
an indication of the stress in the rural
sector.
Steps need to be taken to achieve this
objective:
Doubling the rate of growth of irrigated area;

Reclaiming degraded land and focusing on

soll quality: Improving water management,
rain water harvesting and watershed
development;

Bridging the knowledge gap through effective

extension services;

INDUSTRY
 Industry accounts for about 33 per cent of
India's GVA (Gross Value Addition).

 This sector employs about 22 per cent of the

total workforce.

About one-third of the industrial labour force is

engaged in simple household manufacturing
only.

India ranks 12th in the world in industrial

output.

 This growth of the different industry sectors of

India is attributed to the Government of India's
liberal economic policy
 Transformation from closed type economy to
open type .
Central Statistical Organization (CSO)
classifies the industrial sector into 3
segments:
 Mining and Quarrying.
 Manufacturing and Electricity,
 Gas and Water Supply.

Micro, Small and Medium Enterprises (MSMEs)

 The share of MSMEs in the GDP of the
country increased to 37.5 per cent in 2012-13
from 35.13 cent in 2006-07.
The major policies in regard to credit
delivery to this sector are as follows.

 Inclusion of MSME (as per revised

definition) in priority sector with sub limits
for the micro units,
 Stipulation that collateral should not be
taken for loans up to Rs. 5 lakh to MSME
units
 Providing credit guarantee for collateral
free loans from the Credit Guarantee Trust
Fund administered by SIDBL

Micro, Small and Medium Enterprises

Development (MSMED) Aut. 2006
The MSMED Act, 2006 classifies enterprises
broadly into two categories, ie,
i) manufacturing enterprises; and
ii) service enterprises.
These broad categories are further classified into
micro enterprises, small enterprises and medium
enterprises, depending upon the level of
investment in plant and machinery and equipment
as the case may be.

Services

The Service Sector now accounts for about

52% of India's GVA (Gross Value Addition)

 This sector has gained importance at the

expense of both the agricultural and
industrial sectors through the 1990s.

sector segments like IT/TTES, telecom,

banking, insurance and real estate, and civil
aviation have grown phenomenally .

India ranks 11 in the world in services sector.