India is a vast country with integrated socio-economic parameters. Divided by rich culture and traditions but united by one nation and identified as INDIANS. INDIA is the sixth largest economy in the world.
If we talk about economic growth as a whole, there are several indicators to measure the economic growth of a nation. National income, Gross Domestic Product, per-capita income etc. These macroeconomic parameters are crucial for the growth and progress of a nation.
The economic development in India is guided by socialist inspired politicians. For any country to progress and prosper rural development, industrialisation, infrastructure, public sector reforms and agriculture are the most essential.
The economic growth has seen a rapid increase in service Sector compared to other sectors.
It has been argued that the growth of India’s growth has been a specific one which has resulted in decreasing the number of jobs. Besides, Economists argue that an inclusive growth is required to grow at a faster rate. India’s agricultural sector has seen a decline in its growth.
During independence, the Per-capita income was near about 60% whereas it is 16% now. The factors are as follows.
• Large agricultural subsidies.
• Over regulation of agricultural products has increased price, costs and uncertainty.
• Government restrictions in labour, land and credit market.
• Inadequate infrastructure and funds.
In a recent seminar in one of the Top Engineering Colleges in Gurgaon, a retired personnel from Indian Agricultural Statistical Research Institute develops new techniques for the design of agricultural equipment, analysing data, specialises in statistical techniques for plant and animal breeding.
If we carefully examine the Industrial Growth of India, it is tenth in the world as far as factory output is concerned. Manufacturing sector compiles highest towards the GDP of the country in addition to mining, quarrying etc. which is estimated to be around 27.6%.
Compared to European Countries, India’s industrial growth started in late 1991 and early 1992 with LPG model shaping the backbone of Indian economy. It brought foreign competitors, led to the privatisation of some domestic companies; expansion has been seen in Fast Moving Consumer Goods. Indian private sector which was run by oligopolies before LPG has changed as their strategies have revolved round squeezing costs by recruiting low labour.
As discussed by Prof. HD Mishra, one of the Top B.Tech colleges in Gurgaon, the growth in India’s economy has been seen in the Service sector. India is fifteenth in services output. India has got the second fastest growing services sector with its compound annual growth rate at nine percent.
It has been noticed that the GDP in the services sector is much higher than the overall GDP in-between FY2001-FY2014. It contributes near about 57% of total GDP. Despite deceleration, the service sector in India has a GDP of 6.8% more than overall GDP.
But rapid growth is noticed in financing, insurance, real estate and business services. The growth in this sector is noticed such that FDI flow into our country has drastically declined whereas the export of country’s services has increased indicating the growth of service sector in India.