Session 3

Dr. Ajay Massand

 Introduction to Indian Economy
• After independence, India opted for planned economic development.
• The key concern was to develop thrust and heavy industries.
• Rapid industrialization took place.
• Mixed economy pattern was followed.
• It was decided to pursue economic policy based on liberalization, privatization
and globalization.
• In the era of LPG, India has witnessed rapid growth in some sectors of
economy.
• One of the G-20 major Economies.
• A member of BRICS.

https://www.youtube.com/watch?v=iWufFRnelkM
Sectors in Indian Economy

Prim
ary

Secondary

Tertiary
 Percentage share in GDP

Agriculture Sector
17.32%
17%

Service Sector
53.66%
54%
Industry Sector
29.02%
29%
What is the
share in
2019?

Economic Survey 2017-18

Agriculture Sector Industry Sector Service Sector

 Sector-wise GVA Share
    Sector    GVA (Rupees in Crore) at       Percentage share
current prices (2016-17)
 1.0 Agriculture Sector  2,382,289   17.32 %
 1.1 Agriculture,forestry & fishing  2,382,289               17.32 %
 2.0  Industry Sector  3,989,791   29.02 %
 2.1 Mining & quarrying  309,178   2.25 %
 2.2 Manufacturing  2,278,149               16.57 %
 2.3 Electricity, gas, water supply &  338,396   2.46 %
other utility services
 2.4 Construction  1,064,068               7.74 %
 3.0 Service Sector  7,378,705               53.66 %
 3.1 Trade, hotels, transport,   2,538,162               18.46 %
communication and services
related to broadcasting
 3.2 Financial, real estate & prof  2,896,300               21.06 %
servs
 3.3 Public Administration, defence  1,944,243               14.14 %
and other services
 GVA at Current Economic
Prices Survey  Report
13,750,786          
2017-18   100.00 %
 Introduction to Indian Economy
Agriculture in India- Primary Sector
• India ranks second world wide in farm output.
• Employed 51% of the total work force -2012.
• According to the 2017-2018 survey, Indian agriculture contributes around17-
18% of the Gross Domestic Product (GDP).
• India is the second largest sugar producer in the world after Brazil.
• In tea production, India ranks first. 27% of total production in the world.
• Rice production: West Bengal is the largest producer. Uttar Pradesh is the
second largest producer and Punjab is the third largest producer of rice.
• India is also the second largest producer and largest consumer of silk in the
world.
• Exports Basmati rice, wheat, cereals, spices, fresh fruits, dry fruits, buffalo
meat, cotton, tea, coffee, particularly to the Middle East, South East, and East
Asian Countries. 
• https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=18468
 Figure
India
1: India Employment in agriculture (% of total employment)
70
(modeled ILO estimate)
63.58
60 61.24 59.64
55.99
50 51.51

44.36 42.73
40

30

20

10

0
1991 1995 2000 2005 2010 2015 2017

Source: World Bank Data 2018

What is the
contribution in 2018-
19?
 Secondary/Industry/Manufacturing sector
• 26.% of India‘s GDP, and employs 22% of the total work force.
• Textile Industry contributes about 4% of the country's GDP.
• India produces about 8% of global Pharmaceutical supply in 2011.
• India is the 12th largest producer and 7th largest consumer of machine tools in
the world.
• Petroleum products and chemicals are a major contributor to India’s Industrial
GDP and together they contribute over 34% of its export earnings.
• India’s mining industry is the 4th largest producer of minerals in the world by
volume, and 8th largest producer by value.
• Play a significant role in reducing the inequalities of Income and Wealth.

• MAKE IN INDIA is the need of the hour .

 Find out in 2019?

Figure 2: Employment in industry (% of total employment) (modeled ILO

estimate)
30
25 23.89 23.78
21.8
20 18.8
16.14 16.31
14.81
15
10
5
0
1991 1995 2000 2005 2010 2015 2017
 MAKE IN INDIA

• Make in India is a major new national programme of the Government of

India.

• Facilitate investment.

• Enhance skill development.

• Foster innovation.

• Protect intellectual property.

• To see India as a Global Manufacturing Hub.

• Build best in class manufacturing infrastructure in the country.

 Tertiary Sector
• Currently this sector is the backbone of the Indian economy and contributing
around 57% of the Indian GDP.

• key driver of India’s economic growth.

• India’s Tourism sector has been performing well with Foreign Tourist Arrivals.
(FTA)

• The combined international and domestic tourism contributes 5.92% of India’s

GDP.
• FTAs during 2017 were 10.2 million.

• T N, U P, A P, M P and Karnataka were the Top 5 Destination States in 2016.

• India’s Information Technology – Business Process Management (IT-BPM)

industry grew by 8.1% in 2016-17.

• Indian Real Estate sector has show signs of improvement.

Figure 3: Share of Employment in services -India (% of total employment) (modeled
ILO estimate) Find out in 2019?
40

35
33.47
31.74
30
26.67
25 25.19
24.03
22.6
21.6
20

15

10

0
1991 1995 2000 2005 2010 2015 2017

Source: World Bank Data 2018

 Planning in India
• Post 2014 Planning Commission has been done away and replaced by NITI Aayog.

• National Institution for Transforming India (NITI) Aayog was implemented from 1 st January 2015.

• Chairman Prime Minister Narendra Modi.

• The principal task of Planning Commission was to formulate 5 year plans.

• PMO advised to prepare a Fifteen Year Vision, Seven Year Strategy, and Three Year action agenda
documents.
• 1st plan-1951-56
• 2nd plan-1956-61
• 3rd plan-1961-66
• 4th plan 1969-74
• 5th plan 1974-79
• 6th plan-1980-85
• 7th plan-1985-89
• 8th plan-1992-97
• 9th plan 1997-02
• 10th plan 2002-07
• 11th plan 2007-12
• 12th plan2012-17
 References

• Ibef.org report
• Economic Survey 2017-18
• Ministry of commerce report 2018
• Ministry of Agriculture and farmers welfare
• Department of chemical and petrochemical