Inersectoral Dynamics and Policy Perspective on Emerging Structure of Indian Economy
CSIR-National Institute of Science Technology & Development Studies K. S. Krishnan Marg
Studies indicates that the global economy is on the brink of a recession due to slowdown in economic activities in rich economies and slow growth in the Chinese economy. The recession in global economy may have effect on developing economies like Indian economy. However, in the past it was observed that Indian economy was least affected due to global recession because economy of India is substantially based on agriculture sector. The overall economic growth is linked to the performance and dynamics of different sectors of economy. Over the years India has achieved a significant growth in all sectors; particularly service sectors by contributing the largest share in the Gross Domestic Product (GDP). Before, liberalization the economic growth was mainly dependent on Agriculture sector supported by other sectors like manufacturing and service sector. Earlier, agriculture sector was the chief constituent of the GDP followed by manufacturing and service sectors. But after the new economic policies, the inter-sectoral dynamics has reversed and growth in agriculture sector was tumbled despite major source of employment. Therefore, objective of this paper is to analyse inter-sectoral analysis and assessment of Indian economy since 1951. To understand structural shift a comparative growth pattern of agriculture, industry and service sectors are analysed along with GDP growth with policy feedback.