Sectoral Analysis of Indian Economy

The sectoral analysis of Indian economy is a summary of the factors and industry sectors that were reformed or added in the economic growth report of India covering different Indian industries. The sectoral analysis of Indian economy focuses on the key points of the latest reforms of Indian economy as made in the latest Government of India economic policy statement. The sectoral analysis of Indian economy quantifies key parameters of Indian economy. Further, the analysis of different sectors of Indian economy facilitates the government to use it as the reference guide for the enactment of the future Indian economy policy.



The key developments as per the sectoral analysis of Indian economy, 2007-2008 are as follows:

  • Gross domestic capital formation in 2005-06 grew by 23.7%
  • FDI amounted to US$12.5 billion and outpaced portfolio investment of US$6.8 billion
  • Central Public Sector Enterprises to invest Rs.165,053 crore in 2007-08
  • New 162 production sharing contracts awarded to Petroleum and Natural Gas sector
  • SMEs has witnessed increase in outstanding credit
  • Foreign trade and merchandise exports expected to cross US$125 billion by the end of the current fiscal
  • Provision for tourist infrastructure increased to Rs.423 crore
  • Bank's differential rate of interest scheme providing finance at the rate of 4% to weaker sections
  • Regional rural banks to open at least one branch in 80 uncovered districts in 2007-08
  • PAN made sole identification number for all participants of capital market
  • Seven ultra mega power projects are under process
  • Provision for national highway development programme to be increased to Rs.9,945 crore
  • Farm credit target of Rs.225,000 crore for 2007-08 has been set with an addition of 50 lakh new farmers to the banking system
  • 35 projects have been completed in 2006-07 and additional irrigation potential of 900,000 hectares to be created and training of farmers arranged
  • A pilot programme for delivering subsidy directly to farmers have been arranged
  • Loan facilitation through Agricultural Insurance and NABARD has also been facilitated
  • Corpus of Rural Infrastructure Development Fund to be raised
  • Defense expenditure allocation to increased to Rs.96,000 crore
  • IT allocation for e-governance to increased from Rs.395 crore to Rs.719 crore
  • Exclusive health insurance scheme for senior citizens

According to reports, productivity growth rate of Indian economy is estimated to be around 8% and above until 2020 and at this rate India will become the second largest economy in the world after China. Further, analysis of different Indian sectors suggests that India is one of the top economic reformers worldwide. It simplified business registration, cross-border trade, and payment of taxes, eased access to credit and strengthen investor's interest.