Indian Economy / Macro Economic Aggregates

Industrial Inclusiveness in Growth

Nine standard industries of origin are taken into account for estimation of growth in industry. They are Agriculture and allied sector; Mining and Quarrying; Manufacturing; Electricity, Gas and Water Supply; Construction; Trade, Hotels and Restaurants; Transport, Storage and Communications; Finance, Insurance, Real Estate and Business Services; Community, Social and Personal Services.

The 9 sectors are classified into 3 groups, (i) Agriculture and allied sector comes under Agriculture Sector, (ii) Mining and Quarrying, Manufacturing, Electricity, Gas and Water Supply and Construction together comes under Industry Sector and (iii) Trade, Hotels and Restaurants, Transport, Storage and Communications, Finance, Insurance, Real Estate and Business Services and Community, Social and Personal Services together comes under Services Sector.
Other classifications - Agriculture Sector and Mining and Quarrying comes under Primary Sector. Manufacturing, Electricity, Gas and Water Supply together comes under Secondary Sector. Construction, Trade, Hotels and Restaurants, Transport, Storage and Communications, Finance, Insurance, Real Estate and Business Services and Community, Social and Personal Services together comes under Tertiary Sector.
There is a significant shift from agriculture sector to services sector and sectoral contribution does not indicate equity ( inclusiveness ) over a period of time.
To estimate the gross value added, we use Production approach, Expenditure approach and Income approach. Production approach is being adopted to estimate the gross value added in the Agriculture, Mining and Manufacturing ( registered ) and Electricity and Gas. Expenditure approach is being adopted to estimate the gross value added from Construction. Income approach is being adopted to estimate the gross value added from Manufacturing ( unregistered ), Water Supply and the entire Service sector.