7.2 India’s GDP and its unique sectorial makeup
India’s GDP is predominantly composed of the services sector, which includes IT, telecommunications, retail, and other service-related industries. The manufacturing sector, encompassing textiles, automotive, and manufacturing, is also substantial. Agriculture remains a vital but diminishing part of the GDP. While agriculture continues to play a significant role, it has been decreasing in relative size compared to other sectors due to urbanization and industrialization.
- Total GDP: India’s total GDP reached $3.5 trillion in 2022.
- Primary industry share of the total GDP: The primary industry, which includes agriculture, forestry, and mining, contributes around 21.82% of India’s total GDP.
- Secondary industry share of the total GDP: The secondary industry, which includes manufacturing and construction, contributes about 25% of India’s GDP.
- Tertiary industry share of the total GDP: The tertiary industry, primarily consisting of services like IT, telecommunications, and healthcare, contributes approximately 53.18% of India’s GDP (Verma et al., 2016).
Figure 1: Sector Wise GDP of INDIA
The National Statistical Office of India released data showing that the country’s GDP growth rate increased to 7.8% y/y in the April-June quarter of 2023 from 6.1% y/y in the January-March quarter of the same year. After GDP growth of 13.1% y/y in the April–June quarter of 2022, the robust growth rate was achieved in spite of high base year effects. The growth rate in the primary industry is largely influenced by agricultural performance. The secondary industry’s growth rate is influenced by manufacturing trends and policies. The tertiary industry typically experiences more stable growth, particularly in the services sector.
Figure 2: Indian GDP Growth 2019-2023