Economic development in India still depends on the various sectors that constitute the Indian economy – agriculture, services and manufacturing industries.
India is rated as one of the top economies in the world in terms of purchasing power parity (PPP) of the gross domestic product (GDP) by leading financial entities of the world, such as the International Monetary Fund, the World Bank, and the CIA (as referenced in the CIA World Factbook).
As far as agriculture is concerned, India is the second largest in volume of output. Certain related sectors of agriculture have played a major role in the development of the Indian economy by providing employment to a number of people in the forestry, fishing and logging industries.
In 2009, the agricultural sector contributed 17.5% to the entire GDP, and more than 50% of the total labor force working in India is employed in the agricultural sector.
Production volume has gone up in Indian agriculture at a consistent rate since the 1950s. Much of this improvement can be attributed to the five-year plans that were established for the development of Indian agriculture. Developments in irrigation processes, as well as various modern technologies used have contributed to the overall advancement of agricultural processes.
Substantial amounts of research and development have been carried out in the agricultural space in India by organizations such as the Indian Agricultural Research Institute, the Indian Agricultural Research Statistics Institute and the Indian Council of Agricultural Research.
In the industrial arena, India is 14th in terms of volume of factory output. Various developmental initiatives are also being carried out in the areas of gas, mining, electricity and quarrying. All these sectors contribute significantly to the GDP, and provide jobs to India’s citizens.
India is regarded as the 15th best economy in terms of production in the services sector. A sizeable amount of the Indian workforce is also employed by the service sector. In the ten-year period between 1990 and 2000, the rate of growth has been 7.5%, up from 4.5% during the 30-year period from 1951 to 1980.
Verticals, such as information technology (IT), software development, call centers, IT outsourcing, Business Process Outsourcing (BPO) and other IT-enabled services, have been the biggest contributors in the services sector of the Indian economy.