This is a guest blog written by Surender Bhati.
Economy of India is the 7th largest in the world by nominal GDP and the 3rd largest by purchasing power parity (PPP).
Nominal GDP 2016 was $2.28 trillion
PPP GDP 2016 was:$8.64 trillion
India topped the World Bank’s growth outlook for 2015-16 for the first time with the economy having grown 7.6% in 2015-16 and expected to grow 7.7-8.0% in 2016-17 and China having slowed down.
Sectors of Indian Economy
Sectors contributing to Indian economy on the basis of economic activity are Primary, Secondary and Tertiary sectors.
When we produce a good by exploiting natural resources, it is an activity of primary sector. This is because it forms the base for all the products we subsequently make. Since most of the natural products we get are from agriculture, dairy, fishing, forestry, this sector is also called as agriculture and related sector. Mining is a primary sector activity but is included under the industrial sector . The GDP contribution of the mining industry varies from 2.2% to 2.5% only but going by the GDP of the total industrial sector it contributes around 10% to 11%.
Secondary sector covers activities in which natural products are changed into other forms through industrial activity. In this case the product is not produced by nature but has to be made and therefore some process of manufacturing is essential. Since this sector gives rise to industries, it is also called as Industrial sector.
Tertiary sector comprises of activities that help in the development of primary and secondary sectors. These activities, by themselves, do not produce a good but they are an aid or a support for the production process.
For example, goods that are produced in primary and secondary sectors would need to be transported by trucks and trains and then sold in wholesale and retail shops. At times we also need to store them in godowns. We may also need to talk to others via phone or borrow money from banks to help production and trade. Transportation, storage, communication, banking, trade etc are some examples of tertiary sector activities.
Since these activities generate services rather than goods, the tertiary sector is also called the Services sector.
Employment/Contribution of Sectors to GDP
Total Labour force in India: 502.1 million
Labour force in each sector: