2)Compare the contribution made by different sectors of the economy towards GDP growth
During the planning period.
And)To compare the contribution made by different sectors of the economy towards GDP
growth during the planning period, we need to analyze the changes in their respective shares of
the GDP over time. On June 12, 2023, Finance Minister Nirmala
Sitharaman's office tweeted that India's GDP touched the $3.75 trillion
mark in 2023. The Ministry also confirmed that India has now become
the fifth largest economy in the world, moving from the tenth spot. At
$3,737 billion in current price terms, India's GDP is only lower than the
US ($26,854), China's ($19,374 billion), and Germany's ($4,309 billion).
India's overall 7.2% GDP growth was fueled by the strong performance in
the services sector and robust consumption, solidifying India's position as
one of the world's fastest-expanding and major economies.
India's nominal GDP or GDP at current prices for the fiscal year 2022-23 is
projected to reach ₹272.41 lakh crore, (approximately $3.30 trillion),
marking a significant growth rate of 16.1 percent compared to the ₹234.71
lakh crore (approximately $2.84 trillion) in 2021-22.
The Indian economy has rebounded since the COVID-19 pandemic, with an
exponential growth rate of 9.1 percent in the 2021-22 financial year. The
continued momentum indicates India's resilience and ability to recover
from the hindrances caused by the global health crisis.
One notable factor contributing to India's growth is the increase in imports
of capital goods, which surged by almost 20 percent in FY23 compared to
the previous year. This indicates improved private sector capital formation
and signals confidence in the country's economic prospects.
While private consumption remained weak in the fourth quarter of FY23, it
remained strong overall for the fiscal year. Private consumption had
already surpassed pre-pandemic levels in the third quarter, driven by pent-
up demand and the release of consumer spending.
India’s Chief Economic Advisor, V Anantha Nageswaran,
has highlighted that retail inflation is expected to come down to around 4
percent—the midpoint of the target band of the Reserve Bank of India—in
the current financial year. This projection provides hope for stable prices
and improved purchasing power for consumers.
Another positive development is the government's investment, which is
beginning to crowd in private investment.
Looking ahead, the Reserve Bank of India projects GDP growth of 6.5
percent for the current financial year, with the first quarter estimated at 7.6
percent. This forecast reflects the central bank's confidence in India's
economic prospects and commitment to maintaining a stable growth
trajectory.
1. Agriculture Sector: The agriculture sector typically plays a significant role in countries with a
substantial rural population and reliance on agricultural produce. Its contribution to GDP
growth is determined by factors such as technology adoption, crop yields, and weather
conditions. If the agriculture sector’s share in GDP increases during the planning period, it
indicates a positive contribution to GDP growth.This sector includes forestry and fishing
also. This sector is also known as the primary sector of the economy. At the time of
Indian independence, this sector had the biggest share in the Gross Domestic Product of
India. But year by year its contribution goes on declining and currently, it contributes
only 17% of Indian GDP at current prices. It is worth to mention that the agriculture
sector provides jobs to around 53% population of India.
2. Manufacturing Sector: The manufacturing sector usually exhibits a higher growth rate than
agriculture but has a lower share of GDP due to technological advancements leading to more
labor productivity. If the manufacturing sector’s share in GDP increases during the planning
period, it signals a positive contribution to GDP growth.The manufacturing sector is an
essential driver of economic growth in both developed and developing countries. - It includes
industries involved in the production of goods, such as automobiles, electronics, textiles, and
machinery. - The contribution of the manufacturing sector towards GDP growth during the
planning period depends on factors like technological advancements, infrastructure
development, and government policies. - The sector's growth often leads to job creation,
increased exports, and improved productivity, which positively impact GDP growth.
2. Services Sector: The services sector covers a broad range of economic activities such as
education, healthcare, finance, real estate, tourism, and retail. It usually has a higher share in
GDP and is considered a key driver of economic growth in developed countries. If the services
sector’s share in GDP grows during the planning period, it indicates a positive contribution to
GDP growth.Services sector includes 'Financial, real estate & professional services, Public
Administration, defence and other services, trade, hotels, transport, communication and
services related to broadcasting.
3. Construction Sector: The construction sector’s contribution to GDP growth is significant as it
reflects investments in infrastructure development and real estate. Expansion in the
construction sector can boost job creation, stimulate demand for raw materials, and spur
economic growth. Thus, if the construction sector’s share in GDP increases during the planning
period, it contributes positively to GDP growthIt includes industries involved in the
construction and maintenance of roads, bridges, airports, ports, and utilities like water
supply and electricity. - Adequate infrastructure is crucial for facilitating trade, attracting
investments, and enhancing overall productivity. - The contribution of the infrastructure
sector towards GDP growth during the planning period depends on government
investments, public-private partnerships, and the implementation of infrastructure
development.
4. Mining and Extractive Industries: Countries with a significant presence of natural resources
often have a mining sector contributing to GDP growth. However, the contribution can
fluctuate based on resource availability, extraction costs, and global market demand. If the
mining sector’s share in GDP increases during the planning period, it shows a positive
contribution to GDP growth.Mining and extractive industries, also known as the
extractive sector, encompass activities involved in the exploration, extraction,
processing, and sale of natural resources from the Earth's crust. These industries play a
crucial role in providing essential raw materials for various sectors of the economy, but
they also raise significant environmental, social, and economic challenges. In this
overview, we'll discuss the key aspects of mining and extractive industries.
According to official data released on May 31, the Indian economy recorded
a growth of 6.1 percent in the fourth quarter of the fiscal year 2022-23. This
strong performance contributed to an annual growth rate of 7.2 percent.
Historical GDP and growth rate of India
Year GDP GDP Per Capita (Nominal) GD
2023 (till June) $3,737.00B $2601 6.5
2022 $3,385.09B $2,389 7.0
2021 $3,150.31B $2,238 9.0
2020 $2,671.60B $1,913 -5.
2019 $2,835.61B $2,050 3.8
2018 $2,702.93B $1,974 6.4
2017 $2,651.47B $1,958 6.8
2016 $2,294.80B $1,714 8.2
2015 $2,103.59B $1,590 8.0
2014 $2,039.13B $1,560 7.4
2013 $1,856.72B $1,438 6.3
2012 $1,827.64B $1,434 5.4
2011 $1,823.05B $1,450 5.2
2010 $1,675.62B $1,351 8.5
In India, the GDP growth rate portrays the fluctuations in the adjusted
value of goods and services produced by the country's economy over a
given period. India, one of the most robust economies globally, has
experienced movements in both upward and downward directions
concerning its GDP growth rate in recent years, considering the pre
and post-pandemic situations.
Comparing the contribution of these sectors can vary depending on the specific country and its
economic structure. Some countries may have a larger share of agriculture or manufacturing in
their
GDP, while others may be more service-oriented. Tracking the changes in sectoral shares over
time helps understand their relative contributions to GDP growth during the planning period
GDP per capita
The gross domestic product (GDP) per capita is a metric for evaluating a
country's general economic prosperity. GDP per capita is a way to achieve
economic well-being that takes into account both the size of a country's
economy and its population. The gross domestic product (GDP) divided by
a country's population is a useful measure of the level of living and
economic prosperity in that country. In many international studies, it is a
benchmark against which nations' economies and citizens' standard of life
can be evaluated.
According to the National Statistical Office, the estimated annual per
capita (net national income) at current prices for the year 2022-23 is
reported to be Rs 1,72,000.
India’s rank in GDP
Rank Country GDP (in U.S. dollars) Annual G
1 United States of America 23.3 trillion 1.58%
2 People's Republic of China 17.7 trillion 6.3%
3 Japan 4.9 trillion 1.3%
4 Germany 4.3 trillion 0.2%
Rank Country GDP (in U.S. dollars) Annual G
5 India 3.75 trillion 7.2%
India is now the fifth-largest economy in the world GDP rankings list due
to its strong economic foundations, thriving domestic demand, careful
financial management, high saving rates, and favourable demographic
trends. The country's major economic contributors are traditional and
modern agriculture, technology services, the handicraft industry, and
business outsourcing.
