Indian Economy Structure is a Mixed Economy. India’s large public sectors were responsible for rendering the country a ‘mixed economy’ feature. Indian economy is basically based in the contribution of service sector and near about 53% of its population is dependent on the Agriculture. As soon as the time is passing, the share of Agriculture is decreasing and share of service sector is increasing. Currently India is calling a developing economy of the world.
Features of Indian Economy Structure
- Since independence India has been a ‘mixed economy’. India’s large public sectors were responsible for providing employment and revenue to the economy.
- India’s share in global exports and imports increased from 0.7% and 0.8% respectively in 2000 to 1.7% and 2.5% in 2012 as per the WTO estimates.
- Indian economy overview was highly inspired by Soviet Union’s practices post-independence. It had been recording growth rate not greater than five jumped till 1980s. This stagnant growth was termed by many economists as ‘Hindu Growth Rate’.
- In 1992, the country ushered into liberalization regime. Thereafter, the economy started scaling upward. This new trend in growth was called ‘New Hindu Growth Rate’.
- India’s diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries and a multitude of services.
- Services are the major source of economic growth, accounting for more than half of India’s output with less than one third of its labour force.
Indian Economy Structure
Proportionate contribution of different sectors tends to change with the process of growth. Central Statistical Organization has divided the economy into three basic sectors:
1. Primary Sector: The primary sector of the economy is the change of natural resource into primary products. Most products from this sector provide raw materials for other industries. The share of primary sector has decreased from the past four decades.
- Agriculture: Agriculture in India is the major sector of its economy. Almost two-third of the total workforce earns their livelihood through farming and other allied sectors like forestry, logging and fishing which account 18% of the GDP. These sectors provide employment to 60% of the country’s total population. About 43% of the country’s total geographical area is used for agricultural purpose.
- Fishing: Fishing breeding has increased almost five since India got independence and is a prime industry in coastal regions.
- Mining: It is the term for the extraction of useful material from the treatment of ore, vein or coal seam. Materials obtained from extraction may be base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock salt, and potash. Any material obtained from agriculture or cultured in laboratory requires to be mined.
2. Secondary Sector: The secondary sector contributes 24% of the share in Indian economy. This sector includes:
- Industry: India’s industrial sector accounts for 27.6% of the GDP and gives employment to 17% of the total workforce. Through agriculture is the foremost occupation of the majority of the people, the government had always laid stress on the industrial development of the country.
- Construction: The process of building or assembling of infrastructure is known as a term commonly used in architecture and civil engineering- ” Construction”. Construction job is all about multi-tasking and need the services from project managers, construction manager, Design engineer, construction engineer and project architect.
3. Tertiary/ Service Sector: The tertiary sector account for 51% of the GDP. The tertiary may include: