The Gross Domestic Product in the country like India is experiencing a faster rate of growth in the recent years. With regards to the composition of GDP, the percentage shares of various sectors have largely changed. The percentage share of the agriculture in the total GDP has declined, on the contrary the percentage share of services in the GDP is rising faster.
The percentage share of various sectors of India’s Economy in the total GDP in the year 1990-91 is as follows.
In the year 2005-06, the percentage share of services in the total GDP increased to 54 percent. On the other hand percentage share of agriculture in the GDP declined to 20 percent in 2005-06 from 32 percent in the year 1990-91.
The percentage share of various sectors in the GDP for the year 2005-06 is as follows:
As to the above diagram, the contribution of India’s agriculture to the total GDP of the country is experiencing a declining trend. On the contrary the percentage share of services sector to the total GDP is rising at a faster pace.
Keeping in view the poor performance of the agriculture in India’s Economy, the coming budget 2007-08 is expected to come with more investments on agriculture. Though the services sector in India has huge contribution to the country’s economy, still it has failed to some extent in attracting more investments to the sector.
More over the coming budget 2007-08 is expected to draw more attention on consumption led growth, which is needed for strengthening and sustaining the economic growth of the country.
