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.