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Growth Rate of Primary, Secondary and Tertiary Sector

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The above table shows the growth rate of India’s GDP at factor cost.

It shows that agriculture and allied activities indicate a slow rate of growth.

This growth rate presented a decreasing trend till 1980-81 and then rise to 3.6 percent per annum during 1980-81 and 1990-91.

Rates of Growth of GDP by Industrial Origin at Factor cost The average growth rate of agriculture in four decades of planning was 2.6% as shown in column 6. The growth rate during period of reforms (i.e. 1990-91 to 1996-97) has been shown in column 7.

In first six years of economic reforms, the growth rate of agriculture sector has been 2.8% per annum.

Growth Rate of Secondary Sector:

The growth rate of secondary sector increased at an average annual growth rate of 5.6 percent in the four decades of planning. But during the first six years of economic reform, growth rate has been 6.6% per annum. The growth rate of industrial sector plays a crucial role in determining the growth rate of our GDP. In advanced countries the growth rate is high. In India, Industrial sector is limited and growth rate is slow. The slow structural changes are due to slow growth of industrial sector.

Growth Rate in Tertiary Sector or Service Sector:

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The average growth rate in the service sector was 4.9% per annum during 1950-51 and 1990-91. During first six years of economic reforms, the growth rate increased to 7.4% per annum. The high growth rate of the tertiary sector is due to rapid growth of infrastructure in the country.

The above analysis shows that growth rate is different for various sectors. The growth rate of industrial sector and service sector has been greater than the agricultural sector. This shows that Indian economy is passing through a transition phase from agricultural economy to an industrial one. By increasing the process of industrialisation structure change can be increased.

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