The Gross Domestic Product or GDP is the indicator of the performance of an economy.

According to the estimates of 2008, India's GDP is $1.209 trillion and this is slated to make improvement in the coming times. It is estimated that India's GDP will grow by 6.5% in the year 2009. In 2008 the country's GDP was 9%; the slowdown that has been witnessed this year in the estimates is largely due to the slowdown witnessed by the agriculture and the industrial sectors. A look at the India GDP composition sector wise throws up some interesting figures. The agriculture sector contributed 17.2%; industry contributed 29.1% while the service sector had a contribution of 52.7% according to 2008 estimates.

Sectors contributing to India's GDP
India is a vast country, so the sectors contributing to the country's GDP is also big in numbers. Various sectors falling under the India GDP composition includes food processing, transportation equipment, petroleum, textiles, software, agriculture, mining, machinery, chemicals, steel, cement and many others. Agriculture is the pre dominant occupation in India, employing more than 50% of the population. The service sector accounts for employing more than 25% while the industrial sector accounts for more than 10%.

India's GDP Statistics
GDP: $1.209 trillion (2008 Estimate) GDP Growth: 6.7% (2009) GDP per capita: $1016 GDP by sector (2008 Estimate): Agriculture: 17.2% Industry: 29.1% Services: 53.7% Inflation: 7.8% (2008 Estimate) Labor force: 523.5 million (2008 Estimate)

Share of sector wise contribution to GDP
Agriculture makes the highest contribution to India's GDP. It has been seen in the last few years that the input of the agriculture sector has been declining, but it is still the biggest contributor. This decline in growth has been largely attributed to the irregular climatic condition, which saw less rain this year. Contributions from the manufacturing sector in the country's GDP have been largely along expected lines, though it was slightly down. The reasons attributed for this are the global economic recession, changing pattern of consumer consumption and a stringent liquidity policy. The service and the industrial sector have

performed much better compared to the contribution from the other sectors. The global economic slowdown is showing very slow but some sure signs of recovery. Now is the time for all the sectors to undertake measures to ensure that these sectors contribute appropriately to the GDP of the country. Liberal governmental policies will also ensure that India GDP composition sector wise registers a significant improvement.

Agriculture Growth Rate in India GDP

Agriculture Growth Rate in India GDP had been growing earlier but in the last few years it is constantly declining. Still, the Growth Rate of Agriculture in India GDP in the share of the country's GDP remains the biggest economic sector in the country. India GDP means the total value of all the services and goods that are produced within the territory of the nation within the specified time period. The country has the GDP of around US$ 1.09 trillion in 2007 and this makes the Indian economy the twelfth biggest in the whole world.

The growth rate of India GDP is 9.4% in 2006- 2007. The agricultural sector has always been an important contributor to the India GDP. This is due to the fact that the country is mainly based on the agriculture sector and employs around 60% of the total workforce in India. The agricultural sector contributed around 18.6% to India GDP in 2005.

The agricultural yield increased in India after independence but in the last few years it has decreased. This in its turn has declined the Growth Rate of the Agricultural Sector in India GDP. The total production of food grain was 212 million tonnes in 2001- 2002 and the next year it declined to 174.2 million tonnes. Agriculture Growth Rate in India GDP declined by 5.2% in 2002- 2003. The Growth Rate of the Agriculture Sector in India GDP grew at the rate of 1.7% each year between 2001- 2002 and 2003- 2004. This shows that Agriculture Growth Rate in India GDP has grown very slowly in the last few years.

Industry Growth Rate in India GDP
The Indian economy is the twelfth biggest in the world for it has the GDP of US$ 1.09 trillion in 2007. The country has the second fastest major growing economy in the whole world for it has the GDP rate of 9.4% in 2006- 2007.

The contribution of the Industrial Sector in India GDP The industrial sector is one of the main sectors that contribute to the Indian GDP. The country ranks fourteenth in the factory output in the world. The industrial sector is made up of manufacturing, mining and quarrying, and electricity, water supply, and gas sectors. The industrial sector accounts for around 27.6% of the India GDP and it employs over 17% of the total workforce in the country. The Growth Rate of the Industrial Sector in India GDP came to around 5.2% in 2002- 2003. In this year, within the India GDP, the mining and quarrying sector contributed 4.4%, the electricity, water supply, and gas sector contributed 2.8%, and the manufacturing sector contributed around 5.7%. The Growth Rate of the Industry Sector in India GDP came to around 6.6% in 2003- 2004 and in this year, the electricity, water supply, and gas sector contributed 4.8%, the mining and quarrying sector contributed 5.3%, and the manufacturing sector contributed 7.1% in India GDP. Industry Growth Rate in India GDP came to 7.4% in 2004- 2005, with the manufacturing sector contributing 8.1%, the mining and quarrying sector contributing 5.8%, and the water supply, electricity, and gas sector contributing 4.3% in India GDP. Industry Growth Rate in India GDP came to 7.6% in 2005- 2006. In this year, the mining and quarrying sector contributed 0.9%, the manufacturing sector contributed 9.0%, and the water supply, gas, and electricity sector contributed 4.3%. The Growth Rate of the Industrial Sector finally came to 9.8% in 2006- 2007. This shows that Industry Growth Rate in India GDP has been on the rise over the last few years.

Infrastructure Sector Growth Rate
The amount that India was spending on the Infrastructure Sector was 6% of GDP or US$ 31 billion in 2002. Infrastructure Sector Growth Rate in India GDP came to 3.5% in 1996- 1997 and the next year, this figure was 4.6%. The Growth Rate of the Infrastructure Sector in India GDP increased after the Indian government opened the sector to 100% foreign direct investment (FDI). This was done in order to boost the Infrastructure Sector in the country. The result of opening the sector to the private sector has been that Infrastructure Sector Growth Rate in India GDP has increased at the rate of 9%. It is estimated that the Growth Rate of the Infrastructure Sector in India GDP will grow at the rate of 8.5% between 2006 and 2010. The biggest ongoing project in the Infrastructure Sector in India is the Golden Quadrilateral, which is improving the main roads that connect the four cities of Chennai, Mumbai, Delhi, and Kolkata.

Services Sector Growth Rate in India GDP
The Indian economy is the second fastest major growing economy in the whole world with the growing rate of the GDP at 9.4% in 2006- 2007. The economy of India is the twelfth biggest in the world for it has the GDP of US$ 1.09 trillion in 2007.

The Services Sector contributes the most to the Indian GDP. The Sector of Services in India has the biggest share in the country's GDP for it accounts for around 53.8% in 2005. The contribution of the Services Sector in India GDP has increased a lot in the last few years. The Services Sector contributed only 15% to the Indian GDP in 1950. Further the Indian Services Sector's share in the country's GDP has increased from 43.695 in 1990- 1991 to around 51.16% in 1998- 1999. This shows that the Services Sector in India accounts for over half of the country's GDP.

Limitations of GDP per Capita in Measuring Growth

GDP or gross domestic product has always served as the most important factor in the calculation of the overall economic condition of the citizens, their standard of living and growth. However, proper analysis of the entire process has delineated certain limitations of GDP per Capita in Measuring Growth.

Calculation of GDP per Capita in Measuring Growth:
The process of calculation of GDP per capita in measuring growth requires the division of the current GDP figure of India with the total Indian population.

The result obtained helps in the determination of the total need of the Indian citizens that the GDP is required to gratify. The calculation of the total production, GDP includes public consumption accompanied with private consumption and the production of machinery that assist in further production of goods. The process is fraught with numerous limitations.

Territorial differences between earning and consumption:
The statement of GDP per capita is unable to delineate territorial differences in the output, the employment levels and the per head earnings of the Indian citizens. It takes into account the overall employment and earning of a region without differentiating the zones within that region which inhabit wealthy people from the zones that inhabits comparatively poor people on account of unemployment and economic deprivation.

Economic Development and its Consequence:
The growth ratio cited by GDP figures do not take into account the pollution level that increase due to the rise in the number of industries that adversely effect the standard of living of the people and has a negative impact on growth. GDP figures also fail to provide any information about the standard of goods and services available to the Indian citizens.

Parallel Economy or Black Marketing:

The GDP figure also fails to take into account the earnings gained through black marketing, which is flourishing at a faster pace and is thus described as the parallel economy. The parallel economy involves economic activity that leads to growth, which is not registered with the government organizations and hence is not reflected within the GDP calculation. This phenomenon ranks high among the limitations of GDP per Capita in measuring growth. GDP figures also do not include self -consumed commodities or exchange of goods that contributes to growth ratio.

Discrepancies in Earnings:
The statement of GDP hides the earnings distribution together with irregular circulation of wealth. The discrepancies in the distribution of wealth delineate only one side of the economy i.e. the growth in the economy through the GDP figure but the GDP figure fails to delineate the associated increase in relative poverty.

Income and Spending Ratio:
It is necessary to examine the ratio between income and spending in any economy of the country. The GDP figures do not provide any information about the fact that the growth is achieved through spending resources in the fulfillment of short-term demands of the citizens and not through spending resources for the fulfillment of the long-term improvements. Such a condition would no doubt delineate growth in the economy at present and at the same time over exhaustion of the available limited resources would restrict growth prospects in the years to come. Such a phenomena could be seen as the most significant limitation among all the limitations of GDP per Capita in measuring growth. Thus, all these factors delineate the limitations of GDP per Capita in measuring growth and necessitate the emergence of new methods in the calculation of growth, in all the countries of the world.

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