Monday, December 3, 2012

Is it a fact that in the Indian Economy prices of primary articles have increased in much faster pace than services and manufactured articles since 2004-05?


Let us consider the following table and try to interpret the  Indian Data.
Sectors
Implicit GDP Price Deflator



(%)
    
2004-05
2010-11
2011-12


QE
RE
Primary Sectors
1.00
1.79
1.96
Secondary Sectors
1.00
1.40
1.50
Service Sectors
1.00
1.40
1.51

As could be seen from the above table that Indian economy have witnessed that the prices in the primary sectors (Agriculture and Allied and Mining & Quarrying) have moved much faster than either of the other important manufacturing/construction or services sectors of the economy. Thus, in Indian economy, prices of primary articles have increased in much faster pace than services and manufactured articles since 2004-05.

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