Structural Changes and the Role of Services Sector in Indian Economy
inter Linkages between agriculture and others sector in India : A Post Reform Scenario
Mandeep Singh
Abstract
The present study is an attempt to calculate the sector wise linkages in a post reform period for the Indian economy. To do such analysis, the whole economy is aggregated into three main sectors such as agriculture, industry and services. All the linkages have been calculated for two points of time by utilizing data on two input-output transaction tables for the period 1993/94 and 2006/07. The overall analysis reveals the services sector expansion over the years. The highest linkages of the industrial sector also stress to increase the amount of investment in this sector to expand other sectors as well.
1. Introduction Agriculture plays an essential role in the process of economic development of less developed countries like India. Besides providing food to nation, agriculture was the main source of national income and occupation at the time of independence. Agriculture and allied activities contributed nearly 50 percent to India’s national income. Around 72 percent of total working population was engaged in agriculture. This confirms that Indian economy was a backward and agriculture based economy at the time of independence. After 64 years of independence, the share of agriculture in total national income declined from 50 percent in 1950 to 14.2 percent in 2010-11 (Economic Survey, 2011). But even today more than 60 percent of workforce is engaged in agriculture. In spite of this, it is also an important feature of agriculture that is to be noted that growth of other sectors and overall economy depends on the performance of agriculture to a considerable extent. Because of these reasons agriculture continues to be the dominant sector in Indian Economy. Since Independence India has made much progress in agriculture. Indian agriculture, which grew at the rate of about 1 percent per annum during the fifty years before independence, has grown at the
Mandeep Singh
Abstract
The present study is an attempt to calculate the sector wise linkages in a post reform period for the Indian economy. To do such analysis, the whole economy is aggregated into three main sectors such as agriculture, industry and services. All the linkages have been calculated for two points of time by utilizing data on two input-output transaction tables for the period 1993/94 and 2006/07. The overall analysis reveals the services sector expansion over the years. The highest linkages of the industrial sector also stress to increase the amount of investment in this sector to expand other sectors as well.
1. Introduction Agriculture plays an essential role in the process of economic development of less developed countries like India. Besides providing food to nation, agriculture was the main source of national income and occupation at the time of independence. Agriculture and allied activities contributed nearly 50 percent to India’s national income. Around 72 percent of total working population was engaged in agriculture. This confirms that Indian economy was a backward and agriculture based economy at the time of independence. After 64 years of independence, the share of agriculture in total national income declined from 50 percent in 1950 to 14.2 percent in 2010-11 (Economic Survey, 2011). But even today more than 60 percent of workforce is engaged in agriculture. In spite of this, it is also an important feature of agriculture that is to be noted that growth of other sectors and overall economy depends on the performance of agriculture to a considerable extent. Because of these reasons agriculture continues to be the dominant sector in Indian Economy. Since Independence India has made much progress in agriculture. Indian agriculture, which grew at the rate of about 1 percent per annum during the fifty years before independence, has grown at the
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