The Indian economy is the 12th largest in USD exchange rate terms. India is the second fastest growing economy in the world. India’s GDP has touched US$1.25 trillion. The crossing of Indian GDP over a trillion dollar mark in 2007 puts India in the elite group of 12 countries with trillion dollar economy. The tremendous growth rate has coincided with better macroeconomic stability. India has made remarkable progress in information technology, high end services and knowledge process services.
However cause for concern would be this rapid growth has not been an inclusive in nature, in the sense it has not been accompanied by a just and equitable distribution of wealth among all sections of the population. This economic growth has been location specific and sector specific. For e.g. it has not percolated to sectors were labor is intensive (agriculture) and in states were poverty is acute (Bihar, Orissa, Madhya Pradesh and Uttar Pradesh).
Though India has the second highest growth rate in the world, its rank in terms of human development index (which is broadly used has a measure of life expectancy, adult literacy and standard of living) has gone down to 128 among 177 countries in 2007 compared to 126 in 2006.
Indian GDP –Trend Of Growth Rate
1960-1980 : 3.5%
1980-1990 : 5.4%
1990-2000 : 4.4%
2000-2009 : 6.4%
Contribution of Various Sectors in GDP
The contributions of various sectors in the Indian GDP for 1990-1991 are as follows:
Agriculture: - 32%
Industry: - 27%
Service Sector: - 41%
The contributions of various sectors in the Indian GDP for 2005-2006 are as follows:
Agriculture: - 20%
Industry: - 26%
Service Sector: - 54%
The contributions of various sectors in the Indian GDP for 2007-2008 are as follows:
Agriculture: - 17%
Industry: - 29%
Service Sector: - 54%
It is great news that today the service sector is contributing more than half of the Indian GDP. It takes India one step closer to the developed economies of the world. Earlier it was agriculture which mainly contributed to the Indian GDP.
The Indian government is still looking up to improve the GDP of the country and so several steps have been taken to boost the economy. Policies of FDI, SEZs and NRI investment have been framed to give a push to the economy and hence the GDP.