The Following are the growth rate of economy during different periods

YEAR

Growth Rate

1960-80

3.5%

1980-90

5.4%

1990-00

4.4%

2000-09

6.4%

2009-12

3.5%

Column2
0.07
6.4%
0.06
5.4%
0.05
4.4%
0.04
3.5%

3.5%

0.03

Column2

0.02
0.01
0

0
YEAR

1960-80

1980-90

1990-00

2000-09

2009-12

We can see that even though there was a high rate of growth during the period (1980-1990),
the growth rate decreased during the next ten years, but the growth rate increased in a high
rate from (2009-2009), later however the rate has come down to the lowest in six years from
6.4% to 3.5% almost the half has come down due the economic circumstances from (20092012).

Sector wise contribution towards the overall GDP of India

YEAR
1950-51
1960-61
1970-71
1980-81
1990-91
2000-01
2005-06
2008-09
2010-11
2011-12

Agriculture

Industry
55.28
50.81
44.31
37.92
31.37
23.89
19.54
16.95
14.5
14.01

Service
10.65
13.81
15.46
17.45
19.8
19.99
19.36
18.5
27.8
27

34.07
36.01
40.23
44.63
48.83
56.12
61.1
64.55
57.7
58.99

120
100
80
60

Column4
Column3

40

Column2

20
0

The contribution of the agriculture sector in the total GDP of our country has reduced
drastically. Till 1970s this sector had the highest share in the GDP. From the above table and
graph it is evident that the share of the industrial sector in Indias GDP has not changed
much. However the service sector which was once the least has grown tremendously over
these years. Although it has come down from 64.55% in (2008-2009) to 58.99% in (20112012) but still service sector holds the highest contribution in the GDP of our country.

Sub Sector Contribution to GDP

YEAR

CONSTRUCTION Trade, hotels, transport Finance, insurance, real

and communication
Estate and Business
services

Community social
and personal
services

2008-09

8.5

16.9

15.9

13.3

2009-10

8.2

16.6

15.8

14.5

2010-11

8.2

16.9

16.4

14.3

2011-12

8.1

25.2

16.9

14.2

70

60

50
Community social and personal
services

40

Finance, insurance, real Estate and

Business services

30

Trade, hotels, transport and

communication
20

CONSTRUCTION

10

0
2008- 2009- 2010- 201109 10 11 12

The above table and graph shows the sub-sector wise contribution towards Indias GDP.
The construction sector has come down from 8.5 in 2008-2009 to 8.1 in 2011-2012 which is a
gradual decline but the other sectors like insurance, real estate business services and
community social and personal service sector has also shown same a gradual decline but the
Trade, Hotel, Transport and Communication has shown a rapid increase from 16.9 in 20082009 to 25.2 in 2011-2012 which is a good sign.

YEAR
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12

AGRICULTURE
35.7%
35.3%
34.2%
35.0%
34.2%
32.9%
31.4%
29.9%
31.3%
29.9%
29.5%
28.5%
28.9%
28.2%
27.8%
25.7%
26.2%
24.5%
24.4%
23.3%
22.3%
22.4%
20.1%
20.3%
19.0%
18.3%
17.4%
16.8%
15.8%
14.7%
14.5%
14.0%

INDUSTRY
25.7%
26.2%
25.9%
25.9%
25.9%
25.9%
26.3%
26.8%
26.6%
27.1%
27.6%
27.3%
26.8%
26.7%
27.4%
28.4%
28.0%
27.9%
27.3%
26.9%
27.3%
26.6%
27.4%
27.2%
27.9%
28.0%
28.7%
28.7%
28.2%
28.1%
27.8%
27.0%

SERVICES
37.6%
37.5%
39.0%
38.3%
39.0%
40.4%
41.6%
42.8%
41.5%
42.6%
42.5%
43.9%
44.1%
44.8%
44.5%
45.7%
45.5%
47.5%
48.2%
49.9%
50.4%
51.0%
52.5%
52.5%
53.0%
53.7%
54.0%
54.4%
56.1%
57.2%
57.7%
59.0%

TOTAL
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%

In relation to the sector wise contribution towards the GDP of India, we can see that the share
of the agricultural sector in the total GDP has reduced drastically over the years. Even though
the industrial sector shows some changes over the years, it has not grown much. Hence we
can see that the industrial sector is not performing better than the agricultural sector.
It is evident from the above table that the service sector has shown drastic growth during
recent years. Between the years 1990 to 2005 the contribution of the service sector towards
the GDP of India, has highly increased. Thus we can see that the service sector has been
showing tremendous growth over the years.

In fact the structural percentage share of the service sector in GDP which was 34% in 195051 became 64.5% in 2008-09. The important fact is that the percentage growth difference
during forty years (i.e. from 1950-1990) was 12% while during the two decades of reforms it
has shown a tremendous jump of 17%.

SERVICE EXPORTS AND IMPORTS IN INDIA

YEAR

EXPORTS

IMPORTS

BALANCE

AMT IN Millions
2001-2002

81739

65850

15889

2002-2003

100419

82775

17644

2003-2004

123175

76794

46381

2004-2005

193711

127880

68831

2005-2006

255668

153057

102611

2006-2007

333093

200029

133064

2007-2008

363042

206798

156244

2008-2009

488010

239604

248406

2009-2010

453246

283403

167843

2011-2012

502080

445170

56910

600000

500000

400000

300000

EXPORTS
IMPORTS

200000

BALANCE

100000

from the above table and graph it is very clear that the export import of india have grown to a
large extent. The exports of india has been increasing since 2001-02 from 81739 to 502080 in
2011-12 which shows that the service sector exports have grown drastically. Although the

imports of india is much than its imports in service sector it shows that service sector is not
contributing much to the imports which is a good sign for the overall BOP of india.

Current Account

YEAR

EXPORT

IMPORT

BALANCE

2001-02

388453

372027

16426

2002-03

462836

432176

30660

2003-04

549328

485345

63983

2004-05

693335

705509

-12174

2005-06

863408

907145

-43737

2006-07

1100017

1144400

-44383

2007-08

1266096

1329575

-63479

2008-09

1628389

1756020

-127631

2009-10

1636845

1817471

-180626

2011-12

2886600

3366200

-4796

3500000
3000000
2500000
2000000

EXPORT

1500000

IMPORT

1000000

BALANCE

500000
0
-500000

The current account balances in service exports and imports have increased considerably over
the years which is a huge margin compared to other sectors in the economy the service
exports are contributing more to the overall BOP of India . From the year 2004-12 the

overall balance of the current account have shown a negative value which is not a good sign
and this has the impact on the overall BOP of India , if this the trend in the current account
then there is danger that the BOP may go to disequilibrium which will affect the country in
large.

OVERALL BALANCE OF PAYMENT OF INDIA

YEAR

Current Account

Capital Account

BALANCE

2008

-1276

290

-971

2009

-1797

2440

642

2010

-2197

2912

595

2011

-3760

3190

-685

2012

-4796

4857

207

6000

4000

2000
Current Account
0

Capital Account
BALANCE

-2000

-4000

-6000

The overall balance of payment of India has declined from 642 in 2009 to 207 in 2012 which is
not good to the BOP but compared to the level of BOP which India had in 2008 that is
-971 to 207 in 2012 that is during those years the Indian BOP had been affected due to low
growth rate of the economy and less improvement of service sector but India was able to
capitalize on the service exports and imports so that it had improved, but India have to look
forward for a better way of solving its BOP deficit so that it can improve its economy.