Indian economy is quite diverse and thus embraces a number of sectors,
unified into a big whole. Going by the evaluation done by the Purchasing
Power Parity (PPP), the economy of India has the distinction of being the
fourth largest in the world. A GDP growth rate of 9.2% at the end of the
second quarter of 2006-2007 makes India the second fastest growing major
economy in the world.
In India, agriculture is the main source of earning a livelihood for almost
2/3rd of the total population. Other sectors and industries that play a key
role in affecting the growth of economy include handicrafts, textile,
manufacturing and a number of other services. At present, the service sector
is fast growing and thus is of much significance. Besides, the advent of
digital age has also invited a number of global companies to the country.
And the huge number of English-speaking populace has contributed to the
development of these companies a lot.
Major sectors that influence the economy of India
are as follows:
socio-economic growth of the country significantly depends of the
agricultural sector. India acquires the second rank in the world in terms of
the total farm output. The GDP growth of agriculture along with its
associated sectors recorded 18.6% in 2005. The Five Year Plans have been of
immense help, as the government has emphasised on the agricultural sector.
Though a steady decline has been noticed in the last few years, the
aforementioned sector is the largest in the country.
The second most important economic sector is the industrial sector, which,
as per the factory output, earns the 14th position in the world. The
government also plays a vital role by implementing industrialisation and
protecting the sector from foreign rivalry. The industrial sector is the
source of livelihood for around 17% of the total workforce.
The service output makes India acquire the 15th rank worldwide. A
continuous growth from 4.5% (1951-1980) to 7.5% (1991-2000) states that the
services sector is also the fastest growing in the country. The extensive
infrastructural development in the sector has a long way to go in future as
Banking & Finance
The banking and finance sector of India is the fourth important sector that
affects the growth of Indian economy. The sector can be categorised into the
organised and the unorganised sectors. The organised sector comprises
private, public and commercial banks (along with co-operative banks). The
indigenous bankers, moneylenders and non-banking financial companies fall
into the category of unorganised sector.