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CHANGING STRUCTURE OF INDIAN

ECONOMY IN THE GLOBALIZED ERA

By- KIRAN
)

INTRO

The structure of GDP at factor cost


refers to the share of primary,
secondary and tertiary sectors in the
GDP at factor cost.
Structural changes in output refer to
the changes in relative contribution of
the 3 sectors in GDP (at factor cost)
over the years

OVERALL GDP GROWTH RATE


REAL GROWTH RATES OF GDP AT
FACTOR COST
The growth rate had fallen to

Year

(percent)

2005-06

9.5

2006-07

9.6

2007-08

9.3

2008-09

6.7

2009-10

8.4

2010-11

8.4

2011-12

6.9

6.7 in 2008-09 due to global


financial crisis.
The slowdown in 2011-12 was
the result of global and
domestic factors.
The global factors were the
crisis in the Euro zone area and
near recessionary conditions
prevailing in Europe, sluggish
growth in many industrialized
countries like USA and Japan
and rise in international prices
of crude oil. Domestic factors
especially the lightening of
monetary policy, led to slowing
down of investment and

CHANGES IN THE SECTORAL COMPOSITION


PERCENTAGE SHARE OF DIFFERENT SECTORS IN GDP
AT
COST
S.NO

Sector

1950-51

1990-91

2010-11

Agriculture and
Allied Activities

56.1

33.3

16.8

Industry

14.4

24.1

25.6

Services

29.5

42.6

57.6

TOTAL

100

100

100

1.Decreasing Share of Agriculture and


Allied Activities
2.Rising Share of Industry
3.Increasing Share of Services

PERCENTAGE SHARE OF DIFFERENT


COMPONENTS OF
SERVICES IN GDP AT FACTOR COST
Components of Services

1950-51

2010-11

a) Trade, hotels, transport &


communication

11.3

27.2

b) Financing, insurance, real estate and


business services

7.7

17.4

c) Public administration and defense and 10.5


other

13.0

Total share of services sector in GDP

57.6

29.5

The services sector is composed of three


components and their share in the GDP have
increased.

SHORTCOMINGS IN INDIA'S GROWTH


PERFORMANCE
Following are the shortcomings in the India's growth performance.
Faster growth has not reduced poverty as much as it should have
done.

Growth has not created sufficient number of high quality jobs to


satisfy the aspirations of our increasingly educated youths.
Growth has not been as regionally balanced as it should have been.
The deficiencies in social development indicators such as primary
education, primary health care, safe drinking water, nutrition,
sanitation, etc., have also continued to exist.
The low level of social development is affecting the country's
economic development. Despite progress in many areas, we are
woefully lacking in providing basic services such as healthcare,
education, safe drinking water, etc., to the majority of our population
especially in rural areas. There is lack of infrastructure which is
affecting the economic growth in the country.

THANK YOU

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