Abstract: The paper aims to analyze the changing composition of growth and the sector playing the lead role in pulling the overall growth of the Indian economy. In this regard, the regression analysis is performed to study the impact of different sectors on the rest of the economy. Further, in order to throw light on the importance of different sectors for the growth of service sector, the absolute contribution of the sector in real gross value added is regressed on the absolute share of agriculture and manufacturing in real gross value added. The study for the purpose of analysis, primarily uses the annual data of real Gross values added at 2004-05 constant prices from the year 1981 to 2012 obtained from the National Account Statistics, CSO. The study concludes that secondary sector and trade, hotels, transport and communication sector turn out to be the lead sectors in pulling the overall growth of the economy whereas agriculture continues to be the important sector because despite having lowest contribution to output, it has highest contribution in employment. The revival of the manufacturing and more so the agriculture sector so that the aggregate growth of the economy drives its impetus is need of the hour.
Keywords: Structural change, Agriculture, Manufacturing, Service, Gross value added, Regression analysis.
Title: Structural Change in Indian Economy: Changing Composition of Growth
Author: Priyanka Tariyal
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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