Components of GDP

Gross Domestic Production or GDP is made up of various components, which are broadly classified into the Primary, Secondary and Tertiary sector of the Economy. Primary Sector is agriculture and related activities. Secondary Sector includes the manufacturing activities, Industries etc. Tertiary sector, which is now-a-days has become the engine of growth of the country, is the service sector. The CSO classifies the above sectors in the following:
  1. Agriculture, Forestry, Fishing, Mining and Quarrying
  2. Manufacturing, Construction, Electricity, Gas and water supply
  3. Trade, Hotels, Real Estate, Transport and Communication.
  4. Financing, Insurance, Real estate and Business Services,
  5. Public Administration, Defence and Other related Services.

The above 5 heads represent all the sectors of Indian Economy. They can be further divided , while data of a particular head is presented. The above graphics has shown the components of GDP in 2009-10.
The above breakup is just a rough picture of 2009-10. The share of ONLY agriculture and related activities i.e. except Mining and quarrying was a bit lower which is discussed in agriculture section.
When we discuss the growth of GDP with reference to the above sectoral heads, it becomes sectoral growth in GDP. If we discuss only the growth figures, they give a better picture of the trends in the economy. This growth for the last few years and estimated projections for the 2010-11 is shown in the following table:

  • So, for 2010-11, the projected growth rate in Agriculture, Forestry & Fishing is 5.4%. If we compare this with the figure of 2009-10 (0.4%) we see a robust rebound in the GDP Growth pertaining to Agriculture, Forestry & Fishing. This is a auspicious sign of growth, because growth in agriculture is a must for growth in secondary sector and general well being of the population.
  • There is a slight dip in the growth in the Mining and Quarrying activities.
  • The manufacturing sector which was at highest growth rate in 2006-07 at 14.3 % grew by 8.8% in 2009-10 and is expected to grow by 8.8% rate in 2010-11. The growth rate is stagnant but there is growth.
  • Similarly, there is an increase in the growth of service (Trade & Tourism) sector. It grew by 9.7% last year, but this year the survey says that it will grow by 11%.
  • The Finance, Business Services, Banking etc. are all on growth path. There is a reduction in the growth of the public services.

List of Topics : Economic Survey 2010-11

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Comments

  • Tejashwi Aaryan Mishra
    Reply

    #
    Trade, Hotels, Real Estate, Transport and Communication.
    #
    Financing, Insurance, Real estate and Business Services,

    why Real estate is included in both of the above categories???

    Any specific reason? or its just mistake?