abhishreshthaa
Abhijeet S
In the Indian context, it can be safely said that the service sector now accounts for more than half of India's GDP This sector has gained at the expense of both the agricultural and industrial sectors through the 1990s.
The rise in the service sector's share in GDP marks a structural shift in the Indian economy and takes it closer to the fundamentals of a developed economy (in the developed economies, the industrial and service sectors contribute a major share in GDP while agriculture accounts for a relatively lower share).
The service sector's share has grown from 43.69 per cent in 1990-91to 51.16 per cent in 1998-99. In contrast, the industrial sector's share in GDP has declined from 25.38 per cent to 22.01 per cent in 1990-91 and 1998-99 respectively. The agricultural sector's share has fallen from 30.93 per cent to 26.83 per cent in the respective years.
It is true that the industrial sector too has grown, 1990s (except in 1998-99). But the service sector has grown at a higher rate than industry.
Some economists caution that if the service sector bypasses the industrial sector, economic growth can be distorted. Service sector growth must be supported by proportionate growth of the industrial sector; otherwise the service sector grown will not be sustainable. This project is a comprehensive study of the two important sectors, namely manufacturing and service of China and India.
The rise in the service sector's share in GDP marks a structural shift in the Indian economy and takes it closer to the fundamentals of a developed economy (in the developed economies, the industrial and service sectors contribute a major share in GDP while agriculture accounts for a relatively lower share).
The service sector's share has grown from 43.69 per cent in 1990-91to 51.16 per cent in 1998-99. In contrast, the industrial sector's share in GDP has declined from 25.38 per cent to 22.01 per cent in 1990-91 and 1998-99 respectively. The agricultural sector's share has fallen from 30.93 per cent to 26.83 per cent in the respective years.
It is true that the industrial sector too has grown, 1990s (except in 1998-99). But the service sector has grown at a higher rate than industry.
Some economists caution that if the service sector bypasses the industrial sector, economic growth can be distorted. Service sector growth must be supported by proportionate growth of the industrial sector; otherwise the service sector grown will not be sustainable. This project is a comprehensive study of the two important sectors, namely manufacturing and service of China and India.