Numbers: Some bright, some not so bright!
Service sector has become the backbone of economic development in India.
Siddharth Tak /Zee Research Group
India has made huge economic progress since its Independence. Service sector has become the backbone of economic development in India. It is the most dynamic part of the Indian economy in terms of contribution to the Gross Domestic Product (GDP). But the curse of numbers stayed undiluted as about 37 per cent number of countrymen still remains under the poverty line.
Since independence, Indian economy has witnessed an increase in GDP, per capita income, inflation rate, per cent share of tax in GDP, exports, imports, foreign exchange reserves and gross generation of electricity in India.
The sectoral composition of GDP in India has changed since 1950-51. The share of services and industrial sector has increased while agriculture sector has declined. Service sector has increased from 28 per cent in 1950-51 to 55.3 per cent in 2010-11 and industrial sector has increased from 15 per cent in 1950-51 to 28.6 per cent 2010-11.
Agriculture sector which contributed more than half of the GDP in 1950-51, whose share has continuously declined from 55 per cent in 1950-51 to 16.1 per cent 2010-11.
It seems that government has attempted to promote more to service sector which has contributed in increasing the GDP and per capita income of the country. GDP increased from 3.6 per cent in 1950-51 to 8.5 per cent in 2010-11 and per capita income increased from Rs 1126.9 in 1950-51 to Rs 54,227 in 2010-11.
Inflation rate increased from 1.50 per cent in 1950-51 to 8.72 per cent in 2010-11 and percentage share of tax in GDP increased from 6.98 per cent in 1950-51 to 10.8 per cent in 2010-11
Service Sector covers a wide range of activities such as business services, communication, financial, health, education, real estate, IT, trading, media and entertainment, transportation, and personal services.
The period of economic liberalization has ushered in a rapid change in the service industry. As a result, over the years, India is witnessing a transition from agriculture-based economy to a knowledge-based economy. The knowledge economy creates, disseminates, and uses knowledge to enhance its growth and development.
During the past six decades India’s export increased from USD 1269 million in 1950-51 to USD 245868.2 in 2010; import increased to USD 1273 in 1950-51 to USD 350694.97 in 2010-11 and Foreign exchange reserves (excluding gold, SDR and reserve tranche position at IMF).
While observing the trends in gross electricity in India it appears that contribution of thermal energy in 1970-71 was 28162 Giga watt hour, the current figure of 2009-10 was 670965. Nuclear energy, which was 2418 Giga Watt in 1970-71, increased to 18636 Giga Watt in 2009-10.