Agriculture

Agriculture in India is the major sector of its economy. Almost two-thirds of the total
work-force earns their livelihood though farming and other allied sectors like
forestry, logging and fishing which account 18% of the GDP. These sectors provide
employment to 60% of the countrys total population. About 43% of the countrys
total geographical area is used for agricultural purposes. After independence
additional areas were brought under cultivation and new methods, practices and
techniques of irrigation and farming were introduced by the government. The
Green Revolution and Operation Flood in the country have made India selfsufficient in producing food grains and milk. Among other things, the government
also tried to decrease the dependence on monsoons. Better seeds, use of fertilizer,
education of farmers and provision of agricultural credit and subsidies are reasons
for increase in agricultural productivity.
Agriculture in India is the responsibility of the states rather than the central
government. The central government formulates policy and provides financial
assistance to the states. States like Punjab, Haryana, Uttar Pradesh, Andhra
Pradesh, Tamil Nadu, Karnataka and West Bengal are major producers of food grains
in India. Himachal Pradesh and Jammu and Kashmir are famous for fruit production.
Tea is produced in the high altitudes of Assam, Darjeeling in West Bengal, Tripura,
Ooty in Tamil Nadu, Himachal Pradesh and Kerala. Kerala is also the largest producer
of natural rubber and spices in India. Rajasthan is among the major producers of
edible oils in India and second largest producer of oil seeds. Production of nonconventional items like moong (a type of lentil), soyabeans and peanuts are
gradually gaining importance.
The steady and significant decline in the share of agriculture in total output, as a
result of its much slower growth, has been one of the singular features of the
process of structural change in India since independence. Amongst the three broad
sectors of the economy, agriculture was the largest contributor to Indias GDP at the
beginning. By now however it is by far the smallest. Even though there has been a
steady decline in its share in the GDP, agriculture still remains the largest economic
sector and plays a crucial role in the socio-economic development of the country.

Industry and Manufacturing

The larger process of growth and structural change of the Indian economy after
independence was not a steady process of industrialization.
Indias industrial sector accounts for 27.6% of the GDP and gives employment to
17% of the total workforce. Though agriculture is the foremost occupation of the
majority of the people, the government had always laid stress on the industrial

development of the country. Thus policies and strategies were framed to give a
boost to Indias industry. The government aims at achieving self-sufficiency in
production and protection from foreign competition. Since independence, India is
marching ahead to become a diverse industrial base.
Today India holds some key industries in the sectors like steel, engineering and
machine tools, electronics, petrochemicals, textiles and software. Importance has
also been given to improve the infrastructure of the country. The government has
liberalized its industrial policy thereby attracting huge foreign direct investment. If
on one hand several multinational companies opened their offices in India, on the
other hand many Indian companies started their operations in foreign countries.
Industry Growth Rate in India GDP has been impressive in the last few years. The
Growth Rate of the Industry in the India GDP has grown due to sustained
manufacturing activity over the years. This has given a major boost to the Indian
economy.
The reasons for the increase of Industry Growth Rate in India GDP are that huge
amounts of investments are being made in this sector and this has helped the
industries to grow. Further the reasons for the rise of the Growth Rate of the
Industrial Sector in India are that the consumption of the industrial goods has
increased a great deal in the country, which in its turn has boosted the industrial
sector. Also the reasons for the increase of Industry Growth Rate in India GDP are
that the industrial goods are being exported in huge quantities from the country.

Industrial sector- PROBLEMS

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Failure to achieve targets

Under-utilization of capacity
Absence of proper infrastructure
Increasing capital-output ratio
High cost industrial economy
Inadequate employment generation
Poor performance of public sector
Sectoral imbalances
Regional imbalances
Industrial sickness (small scale and cottage industries)

Services
People need more and more services for leading qualitatively better lifestyle. They
need more means of transport, more communication and educational facilities,
more training, more medical facilities, entertainment, technical facilities, banking
facilities etc.

Tertiary sector which mainly comprise of services depends on scientific research and
innovative developments to increases productivity and it provides engineering and
construction consultancy support services for all projects in all sectors. Developed
countries employ more than 80% the services sector.
India ranks fifteenth in the services output and it provides employment to around
23% of the total workforce in the country. The various sectors under the Services
Sector in India are construction, trade, hotels, transport, restaurant, communication
and storage, social and personal services, community, insurance, financing,
business services, and real estate.
The Services Sector contributes the most to the Indian GDP. The Sector of Services
in India has the biggest share in the country's GDP for it accounts for around 53.8%
in 2005. The contribution of the Services Sector in India GDP has increased a lot in
the last few years.
During 2009-10 and 2010-11, automobiles, rubber and plastics, fabricated metal
products, machinery and equipment and radio, TV and communication equipment
segments had witnessed double digit growth.

The contribution of the Services Sector has increased very rapidly in the India GDP
for many foreign consumers have shown interest in the country's service exports.
This is due to the fact that India has a large pool of highly skilled, low cost, and
educated workers in the country. This has made sure that the services that are
available in the country are of the best quality. The foreign companies seeing this
have started outsourcing their work to India especially in the area of business
services which includes business process outsourcing and information technology
services. This has given a major boost to the Services Sector in India, which in its
turn has made the sector contribute more to the India GDP.

Service sector PROBLEMS in general

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Inadequate infrastructure facilities ( power shortage, improper

development)
High growth but low share in providing employment
Inadequacy in finance
Improper maintenance in airports, railways, highways, power plants etc

skill

Service sector cannot grow in isolation