According to the economic data for the financial year 2006-07, agriculture accounts for 18% of GDP. About 43 % of India's geographical area is used for agricultural activity. It accounts for 8.56 % of India’s exports.
Though the share of Indian agriculture in the GDP has steadily declined, it is still the single largest contributor to the GDP and plays a vital role in the overall socio-economic development of India.
Pattern of Investment 4.9 42460 859200 97-02 IX 5.2 79810 1525640 02-07 X 5.2 22470 434100 92-97 VIII 5.9 10530 180000 85-90 VII 5.8 5700 97500 80-85 VI 12.3 4870 39430 74-79 V 14.7 2320 15800 69-74 IV 12.7 1090 8580 61-66 III 11.3 500 4500 56-61 II 14.9 350 2380 51-56 I % of the Total Agro and Allied (Cr) Total Outlay (Cr) Periods Plans
The service sector is going through almost revolutionary change, which dramatically affects the way in which we live and work. Service sector accounts more than half of India's Gross Domestic Product. The rise in service sector's share in GDP marks a structural change. Service industry
India’s Service sector at a Glance Rapidly increasing two-way trade in IT and ITES and other high-end services sub-sectors has been a critical factor in India’s economy. ‘ Information Technology and IT Enabled Services can do for India what automotives did for Japan and oil for Saudi Arabia.’ -McKinsey & Company.
IT–ITES – the star performer The rapid expansion of Information Technology–Information Technology Enabled Services (IT–ITES) has had a significant impact on the broader Indian economy, by generating substantial export earnings and tax revenue; creating significant numbers of high-quality jobs; and precipitating productivity-enhancing technology diffusion to other industries and the public sector.
Before liberalization Services was the residual sector drawing refugees from agriculture
Between 1996 and 2005- the triple impact of India’s external liberalization, domestic economic reforms and the rise of a global market for skilled services facilitated by information technology makes itself felt, share of services in India’s GDP grew from just over 40% to about 54%.
Rapid growth of services in the economy, specially, in the external sector- facilitates less dependent on the India’s relatively poor infrastructure than manufacturing.
China, which has a far higher proportion of its economy in manufacturing, and has emerged as the global hub for labor intensive manufacturing, has much better infrastructure than India. China’s better infrastructure facilitated entrepreneurship in the manufacturing sector.
An important feature of India’s growth - skewed towards services -described as jobless growth.
Share of agriculture in the Indian economy declined rapidly.
Share of employment in agriculture has remained the same- increasing share of services in the GDP has not been accompanied by services claiming a larger share of employment in the decade of the 1990’s.
growth in output in services in India in recent times has mostly come from the rapid development of skill intensive services in the IT and professional services segments- oriented towards the external market
large proportion of services in India are a part of the informal economy and the official employment figures might understate the actual size of the services workforce
there is a lot of cross-over between services and agriculture sector laborers, i.e. many workers spend part of the year as agricultural workers and the rest of the year working in some service job such as informal retail and construction work
There has been some debate on the repercussions of this skill biased development of service sector jobs