India’s Economic Production – GDP/GVA – Sector-wise break-up – 2018-19 data

The Gross Domestic Product of India is $2.716 trillion (nominal, 2018), which makes it the seventh largest economy by nominal GDP and the third largest by purchasing power parity (PPP).

What is GDP? How is it different from GVA?

Both GDP and GVA are measures of a country’s economic activity over a period of time. Gross Domestic Product (GDP) is a monetary measure of the market value of all final goods and services produced in a country in a year. Gross Value Added (GVA) is a measure of the value of goods and services produced in a country in a year. GVA is arrived at by adjusting for the artificial impact of subsidies and taxes on the market value of goods and services. GVA is a better tool to measure real change/growth in the economy, rather than GDP that can be artificially inflated.

While GVA gives a picture of the state of economic activity from the producers’ side or supply side, the GDP gives the picture from the consumers’ side or demand perspective.

As per the new methodology followed by the Central Statistics Office (CSO), Ministry of Statistics and Program Implementation, GDP = GVA + taxes – subsidies.

The CSO, Government of India publishes only the GVA data for the sectors of Indian economy. The values here have been approximated to make reading easier.

Primary sector or Agriculture and Allied sector

Primary sector constitutes 16% of GVA at current prices. This sector employs around half of India’s labour. India is the second largest agricultural producer in the world and composition of agriculture in its GDP is much higher than the global average of 6.5%.

GVA makeup in this sector comprises of

  • crops – 60%
  • livestock – 20%
    • More than a fifth of India’s agricultural output by value today comes from milk production. The value of milk production has exceeded that of foodgrains (including all cereals and pulses).
  • forestry – 8.5%, 
  • fishing and aquaculture – 5.5%

Secondary sector or Industry sector

Secondary sector constitutes 30% of GVA at current prices.

Manufacturing sector is a subset of secondary sector, and constitutes 17% of India’s GVA, i.e. more than half of the secondary sector. The Make in India mission targets to increase the share of Manufacturing in GDP to 25% by 2025.

A large chunk of manufacturing production is contributed by the automobile industry, i.e. around 7 per cent of India’s GDP.

Tertiary sector or Services sector

Tertiary sector constitutes 54% of GVA at current prices. The sector mainly comprises of education, housing, transport, information technology, etc.


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