Compare and contrast India and China’s sectoral contribution towards GDP in 2003. What does it indicate?
Compare and contrast India and China’s sectoral contribution towards GDP in 2003. What does it indicate?
The
comparison of India’s and China’s sectoral
contribution towards their respective GDP can be done with the help of the data
tabulated below:
Sectors
Contribution to
GDP (in %) (2003)
Primary
(Agriculture)
Secondary
(Industry)
Tertiary
(Service)
India
23
26
51
China
15
53
32
1.
Contribution of
Primary Sector to GDP: The data above
reveals that the contribution of the primary sector to India’s GDP is 23%
compared to 15% of China’s GDP. This confirms the agrarian nature of Indian
economy.
2.
Contribution of
Secondary Sector to GDP: The data also
reveals that China has comparatively a strong industrial base as compared to
India. The contribution of secondary sector to China’s GDP is 53% against the
contribution of mere 26% to India’s GDP. From this, we can infer that India’s
industrial sector is far behind that of China.
3.
Contribution of
Tertiary Sector to GDP: We can also
analyze that although India’s industrial sector is not as strong as that of
China yet the contribution of India’s service sector is much stronger to its than that of
China.
Thus,
analysing the above data helps us to conclude that a
significant portion of India’s GDP is contributed by tertiary sector followed
by its agriculture sector. On the contrary, the major contributor to China’s
GDP is the secondary sector followed by its tertiary sector.
The process of economic growth has
led to a tremendous shift in the sectoral share of
output and employment. The percentage share of the primary sector in total
output and employment tends to decrease while that of the secondary and
tertiary sector tends to increase. The following facts explain the sectoral share in output and employment of India and China.
i. Both India and China have shown a noticeable structural
transformation from the primary sector to other two sectors. The primary sector
in both the countries is no longer the important contributor to the nation’s
GDP.
ii. While India is relying more on
its tertiary sector China is relying more on its secondary sector in terms of
the sectoral contribution to their GDP. The
experience of China is similar to that of the other developed countries in the
world. The experience of the developed countries shows that secondary sector
followed by the tertiary sector emerge as the leading sectors of the economy.
Compared to China, India showed a direct shift from the primary sector to
tertiary sector. This is due to the fast integration of these two economies
with the other market economies of the world.
The
comparison of India’s and China’s sectoral
contribution towards their respective GDP can be done with the help of the data
tabulated below:
|
Sectors |
Contribution to
GDP (in %) (2003) |
|
|
Primary
(Agriculture) Secondary
(Industry) Tertiary
(Service) |
India 23 26 51 |
China 15 53 32 |
1.
Contribution of
Primary Sector to GDP: The data above
reveals that the contribution of the primary sector to India’s GDP is 23%
compared to 15% of China’s GDP. This confirms the agrarian nature of Indian
economy.
2.
Contribution of
Secondary Sector to GDP: The data also
reveals that China has comparatively a strong industrial base as compared to
India. The contribution of secondary sector to China’s GDP is 53% against the
contribution of mere 26% to India’s GDP. From this, we can infer that India’s
industrial sector is far behind that of China.
3.
Contribution of
Tertiary Sector to GDP: We can also
analyze that although India’s industrial sector is not as strong as that of
China yet the contribution of India’s service sector is much stronger to its than that of
China.
Thus,
analysing the above data helps us to conclude that a
significant portion of India’s GDP is contributed by tertiary sector followed
by its agriculture sector. On the contrary, the major contributor to China’s
GDP is the secondary sector followed by its tertiary sector.
The process of economic growth has
led to a tremendous shift in the sectoral share of
output and employment. The percentage share of the primary sector in total
output and employment tends to decrease while that of the secondary and
tertiary sector tends to increase. The following facts explain the sectoral share in output and employment of India and China.
i. Both India and China have shown a noticeable structural
transformation from the primary sector to other two sectors. The primary sector
in both the countries is no longer the important contributor to the nation’s
GDP.
ii. While India is relying more on its tertiary sector China is relying more on its secondary sector in terms of the sectoral contribution to their GDP. The experience of China is similar to that of the other developed countries in the world. The experience of the developed countries shows that secondary sector followed by the tertiary sector emerge as the leading sectors of the economy. Compared to China, India showed a direct shift from the primary sector to tertiary sector. This is due to the fast integration of these two economies with the other market economies of the world.
