Importance of various Indian economy Sectors

The primary sector in India comprise of agriculture, forestry & fishing and mining & quarrying sub-sectors.  Its production or output is produced by consumption of the natural resources and reproduction of these natural resources normally takes many years. The secondary or industrial sector generally takes the output of the primary sector and manufactures finished tangible products/goods. Many of these industries consume large quantities of energy and require factories and machinery to convert the raw materials into goods and products. They also produce waste materials and waste heat that may pose environmental problems or cause pollution. Manufacturing, Electricity and Construction are part of the secondary sector of the economy.  The tertiary or Services Sector inter-alia includes sub-sectors like Trade; Hotels and Restaurants; Transport; Storage & warehousing; Communication; Banking and Insurance; Real Estate; Business services; Public administration and defence; Social and personal services; and Other services including Education, Medical and Health, Religious and Other Community Services, Legal Services, Recreation and Entertainment Services.

Here below we present the share of GDP at constant (2004-05) prices for the various sectors/ sub-sectors for the year 2004-05 (Base Year) and for latest available years 2011-12 (quick estimates (QE) or first revised estimates (FRE) of the advance estimates and are based on more data than what is being used to estimate the advance estimates and its working methodology is quite in detail) and for the year 2012-13 (provisional estimate (PE)).

Sectors	Share of GDP at (2004-05) Prices
			(%)
	2004-05	2011-12	2012-13
		QE/FRE	PE
1.  agriculture,forestry & fishing	19.0	14.1	13.7
1.1 agriculture	16.0	12.0	11.6
1.2 forestry & logging	2.1	1.4	1.3
1.3 fishing	0.9	0.7	0.7
2.  mining & quarrying	2.9	2.1	2.0
3.  manufacturing	15.3	15.7	15.1
3.1 registered	9.8	10.9	10.5
3.2 unregistered	5.4	4.8	4.6
4.  electricity, gas & water supply	2.1	1.9	1.9
5.  construction	7.7	7.9	7.8
6.  trade, hotels & restaurant	16.1	16.9	17.5
6.1 trade	14.6	15.5	16.1
6.2 hotels & restaurants	1.5	1.4	1.4
7. transport,storage & communication	8.4	10.6	10.3
7.1 railways	1.0	1.0	0.9
7.2 transport by other means	5.7	5.6	5.5
7.3 storage	0.1	0.1	0.1
7.4 communication	1.7	4.0	3.8
8. financing,ins.,real estate & bus servs	14.7	18.1	18.7
8.1 banking & insurance	5.8	8.8	9.0
8.2 real est, O'ship of dwellings	9.0	9.3	9.7
9.  community, social & pers. servs	13.8	12.8	13.0
9.1 public administration & defence	5.9	5.7	5.6
9.2 other services	8.0	7.2	7.5
10. GDP of All Sectors	100.0	100.0	100.0

Sectors	Share of GDP at (2004-05) Prices
			(%)
	2004-05	2011-12	2012-13
		QE/FRE	PE
Primary Sector	21.9	16.2	15.6
Secondary Sector	25.1	25.4	24.8
Tertiary sector or Service Sector	53.0	58.4	59.6

It can be seen that the primary sector’s share is decreasing in India and the manufacturing or secondary sector has been maintaining its share, whereas the tertiary or service sector is gaining the lost share of the primary sector.  Out of various sub-sectors of primary sector, it is mainly agriculture which is losing its traditional shine.  Within services, it is mainly banking & insurance and communication and by trade who at present mainly gaining the importance in the economy.  The other services are either loosing marginally or are maintaining their share over time.  It is only other services (small ones) are losing shine collectively.

This Service Sector constitutes a large part of the Indian economy both in terms of employment potential and its contribution to national income now. Central Statistical Office (CSO), Ministry of Statistics & Programme Implementation (MOSPI) is responsible at the Central level to prepare GDP (Value Addition) estimates for the Indian Economy. The estimates are being released through ages now. The official site of MOSPI does admit the significance and importance of the Sector. About sixty per cent of total GDP (value addition) comes from the Service Sector. Although the service sector has a pivotal role in the country’s economic development, database in this sector is highly disorganized. A major limitation of the existing statistical system in this respect is the absence of a well organized mechanism for maintaining a regular and proper database for this sector. For services like banking & Insurance, Railway Transport, public administration & defence, the data base is in the hands of the central/ state governments and so can be considered to be better organized and more reliable.  Thus for large chunk of services, CSO may be using some periodical surveys or other administrative / private sources. One may also infer that calculations of our national income may be in trouble as the major part of it having the basis of its calculations on wrong footing. Unlike the Annual Survey of Industries (ASI) that is devoted to collection of data from manufacturing and few other categories of units included in the lists maintained by the Chief Inspectors of Factories, there is no such scheme in the services sector for annual collection of data from the units either having a large number of workers or those contributing significantly in terms of annual turnover. The main difficulty in this regard is the non-availability of an up-to-date frame of such units and lack of regular mechanism for collection of data. The development of National Business Register being envisaged based on the Sixth Economic Census is likely to address the issue of frame to a large extent.